Exhibit 10.3

 

EXECUTION VERSION

 

 

 

 

 

ROCKWELL COLLINS, INC.

 

 

 

FIVE-YEAR
 CREDIT AGREEMENT

 

 

dated as of December 16, 2016,

 

 

JPMORGAN CHASE BANK, N.A.,
 Administrative Agent

 

 

CITIBANK, N.A.,

WELLS FARGO BANK, N.A.,
 Syndication Agents



 

CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK,

MIZUHO BANK LTD.,

Documentation Agents

 

 

The Lenders Listed Herein

 

 

JPMORGAN CHASE BANK, N.A.,

CITIGROUP GLOBAL MARKETS INC.,

WELLS FARGO SECURITIES, LLC,

Joint Lead Arrangers and Bookrunners

 











 

TABLE OF CONTENTS

 

	
 
    	
PAGE
    
	
 
    	
 
    
	
 
    	
 
    
	
ARTICLE 1
    
	
DEFINITIONS
    
	
 
    	
 
    
	
Section 1.01   . Definitions
    	
1
    
	
Section 1.02   . Accounting Terms and Determinations
    	
15
    
	
Section 1.03   . Types of Borrowings
    	
15
    
	
Section 1.04   . Terms Generally
    	
15
    
	
 
    	
 
    
	
ARTICLE 2
    
	
THE CREDITS
    
	
 
    	
 
    
	
Section 2.01   . Commitments to Lend
    	
16
    
	
Section 2.02   . Notice of Committed Borrowing
    	
16
    
	
Section 2.03   . Competitive Bid Borrowings
    	
16
    
	
Section 2.04   . Notice to Lenders; Funding of Loans
    	
19
    
	
Section 2.05   . Evidence of Debt
    	
20
    
	
Section 2.06   . Maturity of Loans
    	
20
    
	
Section 2.07   . Interest Rates
    	
20
    
	
Section 2.08   . Method of Electing Interest Rates
    	
21
    
	
Section 2.09   . Facility Fee
    	
22
    
	
Section 2.10   . Optional Termination or Reduction of Commitments
    	
23
    
	
Section 2.11   . Scheduled Termination of Commitments
    	
23
    
	
Section 2.12   . Optional Prepayments
    	
23
    
	
Section 2.13   . General Provisions as to Payments
    	
23
    
	
Section 2.14   . Funding Losses
    	
24
    
	
Section 2.15   . Computation of Interest and Fees
    	
24
    
	
Section 2.16   . Regulation D Compensation
    	
24
    
	
Section 2.17   . [Reserved]
    	
24
    
	
Section 2.18 . Letters of Credit.
    	
24
    
	
Section 2.19 . Extension Option
    	
28
    
	
Section 2.20 . Defaulting Lenders; Affected Lenders.
    	
29
    
	
 
    
	
ARTICLE 3
    
	
CONDITIONS
    
	
 
    
	
Section 3.01   . [Reserved].
    	
31
    
	
Section 3.02   . Conditions Precedent to Closing Date
    	
31
    
	
Section 3.03   . Borrowings and Issuances of Letters of Credit
    	
32
    
	
Section 3.04   . Existing Credit Agreements.
    	
33
    


 

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ARTICLE 4
    
	
REPRESENTATIONS AND   WARRANTIES
    
	
 
    
	
Section 4.01   . Corporate Existence and Power
    	
33
    
	
Section 4.02   . Corporate and Governmental Authorization; No   Contravention
    	
34
    
	
Section 4.03   . Binding Effect
    	
34
    
	
Section 4.04   . Financial Information
    	
34
    
	
Section 4.05   . Litigation
    	
34
    
	
Section 4.06   . Environmental Matters
    	
35
    
	
Section 4.07   . Investment Company Act
    	
35
    
	
Section 4.08   . Compliance with Certain Laws
    	
35
    
	
 
    	
 
    
	
ARTICLE 5
    
	
COVENANTS
    
	
 
    	
 
    
	
Section 5.01   . Information
    	
35
    
	
Section 5.02   . Maintenance of Existence
    	
36
    
	
Section 5.03   . Compliance with Laws
    	
36
    
	
Section 5.04   . Use of Proceeds
    	
36
    
	
Section 5.05   . Debt to Capitalization
    	
36
    
	
Section 5.06   . Mergers, Consolidations and Sales of Assets
    	
37
    
	
Section 5.07   . Limitations on Liens
    	
37
    
	
Section 5.08   . Limitations on Sale and Lease-Back
    	
39
    
	
Section 5.09   . Limitations on Change in Subsidiary Status
    	
40
    
	
 
    	
 
    
	
ARTICLE 6
    
	
DEFAULTS
    
	
 
    	
 
    
	
Section 6.01   . Events of Default
    	
40
    
	
Section 6.02   . Notice of Default
    	
42
    
	
Section 6.03   . Cash Cover
    	
42
    
	
 
    	
 
    
	
ARTICLE 7
    
	
THE AGENT
    
	
 
    	
 
    
	
Section 7.01   . Appointment and Authorization
    	
42
    
	
Section 7.02   . Agent and Affiliates
    	
42
    
	
Section 7.03   . Action by Agent
    	
42
    
	
Section 7.04   . Consultation with Experts
    	
42
    
	
Section 7.05   . Liability of Agent
    	
42
    
	
Section 7.06   . Indemnification
    	
43
    
	
Section 7.07   . Credit Decision
    	
43
    
	
Section 7.08   . Successor Agent
    	
43
    
	
Section 7.09   . Agent’s Fee
    	
43
    


 

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ARTICLE 8
    
	
CHANGE IN CIRCUMSTANCES
    
	
 
    
	
Section 8.01   . Basis for Determining Interest Rate Inadequate or   Unfair
    	
43
    
	
Section 8.02   . Illegality
    	
44
    
	
Section 8.03   . Increased Cost and Reduced Return
    	
44
    
	
Section 8.04   . Taxes.
    	
46
    
	
Section 8.05   . Base Rate Loans Substituted for Affected Fixed   Rate Loans
    	
48
    
	
Section 8.06 . Mitigation Obligations; Replacement of Lenders.
    	
49
    
	
 
    	
 
    
	
ARTICLE 9
    
	
MISCELLANEOUS
    
	
 
    	
 
    
	
Section 9.01   . Notices
    	
49
    
	
Section 9.02   . No Waivers
    	
50
    
	
Section 9.03   . Expenses; Indemnification
    	
50
    
	
Section 9.04   . Sharing of Set-offs
    	
51
    
	
Section 9.05   . Amendments and Waivers
    	
51
    
	
Section 9.06   . Successors and Assigns
    	
52
    
	
Section 9.07   . Designated Lenders
    	
53
    
	
Section 9.08   . Collateral
    	
54
    
	
Section 9.09   . Governing Law; Submission to Jurisdiction
    	
54
    
	
Section 9.10   . Counterparts; Integration
    	
55
    
	
Section 9.11   . Waiver of Jury Trial
    	
55
    
	
Section 9.12   . Confidentiality
    	
55
    
	
Section 9.13   . USA Patriot Act
    	
55
    
	
Section 9.14   . No Fiduciary Relationship
    	
56
    
	
Section 9.15   . Acknowledgement and Consent to Bail-In of EEA   Financial Institutions
    	
56
    
	
Section 9.16   . Right of Set-off
    	
57
    
	
 
    	
 
    
	
Schedule 1.01
    	
Commitment Schedule
    	
 
    
	
Schedule 2.01
    	
Pricing Schedule
    	
 
    
	
Schedule 2.18
    	
Issuing Lenders
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
Form of Note
    	
 
    
	
Exhibit B
    	
Form of Competitive   Bid Quote Request
    	
 
    
	
Exhibit C
    	
Form of Invitation   for Competitive Bid Quotes
    	
 
    
	
Exhibit D
    	
Form of Competitive   Bid Quote
    	
 
    
	
Exhibit E
    	
[Reserved]
    	
 
    
	
Exhibit F
    	
[Reserved]
    	
 
    
	
Exhibit
    	
G  Form of   Assignment and Assumption Agreement
    	
 
    
	
Exhibit
    	
H  Form of   Designation Agreement
    	
 
    
	
Exhibit I
    	
Form of Extension   Agreement
    	
 
    


 

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FIVE-YEAR
 CREDIT AGREEMENT

 

FIVE-YEAR CREDIT AGREEMENT dated as of December 16, 2016 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”) among ROCKWELL COLLINS, INC., the LENDERS listed on the signature pages hereof and JPMORGAN CHASE BANK, N.A., as Agent.

 

The parties hereto agree as follows:

 

ARTICLE 1

DEFINITIONS

 

Section 1.01.  Definitions.  The following terms, as used herein, have the following meanings:

 

“Absolute Rate Auction” means a solicitation of Competitive Bid Quotes setting forth Competitive Bid Absolute Rates pursuant to Section 2.03.

 

“Acquired Entity” means B/E Aerospace, Inc., a Delaware corporation.

 

“Acquisition” means the acquisition by the Company of the Acquired Entity, made pursuant to the Acquisition Agreement.

 

“Acquisition Agreement” means the Agreement and Plan of Merger, dated as of the Acquisition Agreement Date, among the Acquired Entity, the Company and Quarterback Merger Sub Corp., a Delaware corporation and a wholly owned subsidiary of the Company.

 

“Acquisition Agreement Date” means October 23, 2016.

 

“Acquisition Increase Date” means the date of closing of the Acquisition, but only if such closing occurs not later than the Acquisition Increase Termination Date.

 

“Acquisition Increase Date Adjustment” has the meaning set forth in the definition of “Commitment.”

 

“Acquisition Increase Termination Date” means the earlier of (i) the date on which the Acquisition shall be terminated or abandoned pursuant to the Acquisition Agreement and (ii) 5:00 p.m. (New York City time) on October 21, 2017.

 

“Administrative Questionnaire” means, with respect to each Lender, an administrative questionnaire in the form prepared by the Agent and submitted to the Agent (with a copy to the Company) duly completed by such Lender.

 

“Affected Lender” shall mean any Lender whose credit ratings from Moody’s and S&P fall below Baa3 and BBB-, respectively, but only if the Company notifies the Agent of Company’s designation of such Lender as an “Affected Lender” hereunder.

 

“Agent” means JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the Lenders hereunder, and its successors in such capacity.

 











 

“Agent and Lender Parties” has the meaning set forth in Section 9.14.

 

“Agent Resignation Event” means (a) the occurrence and continuance of an Event of Default or (b) the Company ceasing to maintain an investment grade rating from each of S&P and Moody’s.

 

“Agreement” has the meaning set forth in the preamble.

 

“Aggregate Commitment Amount” has the meaning set forth in Section 2.09(a).

 

“Applicable Lending Office” means, with respect to any Lender, (a) in the case of its Base Rate Loans, its Domestic Lending Office; (b) in the case of its Euro-Dollar Loans, its Euro-Dollar Lending Office and (c) in the case of its Competitive Bid Loans, its Competitive Bid Lending Office.

 

“Applicable Percentage” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment, as the same may be adjusted from time to time pursuant to Section 2.19.  If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting Lender at the time of determination.

 

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an affiliate of a Lender or (c) an entity or an affiliate of an entity that administers or manages a Lender.

 

“Arrangers” means JPMorgan Chase Bank, N.A. Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, in their capacities as joint lead arrangers and bookrunners.

 

“Assignee” has the meaning set forth in Section 9.06(c).

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment; provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof; provided further that such ownership interest does not result in or provide such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.

 

“Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the London Interbank Offered Rate for a one month Interest Period beginning on such day (or if such day is not a Euro-Dollar

 

2











 

Business Day, the immediately preceding Euro-Dollar Business Day) plus 1%; provided that, the London Interbank Offered Rate for any day shall be based on the London Interbank Offered Rate at approximately 11:00 a.m. London time on such day.  Any change in the Base Rate due to a change in the Prime Rate, the NYFRB Rate or the London Interbank Offered Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the London Interbank Offered Rate, respectively.

 

“Base Rate Loan” means a Committed Loan that bears interest at the Base Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election or pursuant to Section 2.18(c)(ii) or Article 8.

 

“Base Rate Margin” means a rate per annum determined in accordance with the Pricing Schedule.

 

“Borrowing” has the meaning set forth in Section 1.03.

 

“Change in Law” means (a) the adoption of any law, rule, treaty or regulation after the Change in Law Date, (b) any change in any law, rule, treaty or regulation or in the interpretation or application thereof by any Governmental Authority, in each case after the Change in Law Date or (c) compliance by any Lender or any Issuing Lender with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the Change in Law Date; provided, however, that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be after the date of this Agreement, regardless of the date enacted, adopted or issued.

 

“Change in Law Date” means (a) with respect to any Competitive Bid Loan, the date of the related Competitive Bid Quote and (b) with respect to any other matter, the Closing Date.

 

“Closing Date” means the date on which the conditions precedent specified in Section 3.02 are satisfied or waived in accordance with Section 9.05.

 

“Commission” means the Securities and Exchange Commission, or any successor to its duties under the Securities Exchange Act of 1934.

 

“Commitment” means (a) with respect to each Lender, the amount set forth opposite the name of such Lender in the applicable table on the Commitment Schedule, including (x) before the Acquisition Increase Date, its “Initial Commitment Amount” and (y) upon and after the Acquisition Increase Date (if any), its “Acquisition Increase Commitment Amount”, each as set forth under the column so identified in such table (any such increase for any Lender, its “Acquisition Increase Date Adjustment”), (b) with respect to each Person which becomes a Lender pursuant to Section 2.19, the amount of the Commitment thereby assumed by it (including any Acquisition Increase Date Adjustment with respect thereto) and (c) with respect to any Assignee, the amount of the transferor Lender’s Commitment assigned to such Assignee pursuant to Section 9.06(c) (including any Acquisition Increase Date Adjustment with respect thereto), in each case as such amount may be reduced from time to time pursuant to Section 2.10 or Section 2.19, increased from time to time pursuant to Section 2.19 or changed as a result of an assignment pursuant to Section 9.06(c).  Any assignment of a Commitment prior to the Acquisition Increase

 

3











 

Commitment Date shall include the prospective Acquisition Increase Date Adjustment with respect thereto.

 

“Commitment Letter” means the commitment letter dated November 2, 2016, between the Company and JPMorgan Chase Bank, N.A.

 

“Commitment Schedule” means the Commitment Schedule attached hereto as Schedule 1.01.

 

“Committed Loan” means a Loan made by a Lender pursuant to Section 2.01(a); provided that, if any such loan or loans (or portions thereof) are combined or subdivided pursuant to a Notice of Interest Rate Election, the term “Committed Loan” shall refer to the combined principal amount resulting from such combination or to each of the separate principal amounts resulting from such subdivision, as the case may be.

 

“Company” means Rockwell Collins, Inc., a Delaware corporation and its successors.

 

“Competitive Bid Absolute Rate” has the meaning set forth in Section 2.03(d).

 

“Competitive Bid Absolute Rate Loan” means a loan made or to be made by a Lender pursuant to an Absolute Rate Auction.

 

“Competitive Bid Lending Office” means, as to each Lender, its Domestic Lending Office or such other office, branch or affiliate of such Lender as it may hereafter designate as its Competitive Bid Lending Office by notice to the Company and the Agent; provided that any Lender may from time to time by notice to the Company and the Agent designate separate Competitive Bid Lending Offices for its Competitive Bid LIBOR Loans, on the one hand, and its Competitive Bid Absolute Rate Loans, on the other hand, in which case all references herein to the Competitive Bid Lending Office of such Lender shall be deemed to refer to either or both of such offices, as the context may require.

 

“Competitive Bid LIBOR Loan” means a loan made or to be made by a Lender pursuant to a LIBOR Auction (including such a loan bearing interest at the Base Rate pursuant to Section 8.01(a)).

 

“Competitive Bid Loan” means a Competitive Bid LIBOR Loan or a Competitive Bid Absolute Rate Loan.

 

“Competitive Bid Margin” has the meaning set forth in Section 2.03(d).

 

“Competitive Bid Quote” means an offer by a Lender to make a Competitive Bid Loan in accordance with Section 2.03.

 

“Consolidated Debt” means, at any date, the Debt of the Company and its Restricted Subsidiaries, as consolidated and determined as of such date in accordance with GAAP.

 

“Consolidated Funded Debt” means, at any date, the Funded Debt of the Company and its Restricted Subsidiaries, as consolidated and determined as of such date in accordance with GAAP.

 

“Consolidated Subsidiary” means, as to any Person, at any date any Subsidiary or other entity the accounts of which would be consolidated with those of such Person in its consolidated financial statements if such statements were prepared as of such date.

 

4











 

“Debt” of any Person means, at any date, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business, (d) all obligations of such Person as lessee which are capitalized in accordance with GAAP, (e) all non-contingent obligations of such Person to reimburse any bank or other Person in respect of amounts paid under a letter of credit or similar instrument, (f) all Debt secured by a Lien on any asset of such Person, whether or not such Debt is otherwise an obligation of such Person, and (g) all Guarantees by such Person of Debt of another Person (each such Guarantee to constitute Debt in an amount equal to the amount of such other Person’s Debt Guaranteed thereby).

 

“Debt to Total Capitalization Ratio” means at any time, the ratio, expressed as a percentage, of (a) Consolidated Debt to (b) Total Capitalization.

 

“Default” means any condition or event which constitutes an Event of Default or which with the giving of notice or lapse of time or both would, unless cured or waived, become an Event of Default.

 

“Defaulting Lender” means any Lender that (a) has failed, within two Domestic Business Days of the date required to be funded or paid, to (i) fund all or any portion of its Loans, (ii) fund all or any portion of its participations in Letters of Credit or (iii) pay over to the Agent or any Lender any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Agent and the Company in writing that such failure is the result of such Lender’s reasonable determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Company or the Agent in writing, or has made a public statement to the effect, that it does not intend or expect to comply with all or any portion of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s reasonable determination that a condition precedent (specifically identified and including the particular default, if any) to funding under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit or (c) has failed, within three Domestic Business Days after written request by the Agent, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations to fund Loans and participations in then outstanding Letters of Credit under this Agreement; provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon the Agent’s receipt of such certification in form and substance reasonably satisfactory to it, (d) has become the subject of a Bankruptcy Event or has a Parent that has become the subject of a Bankruptcy Event or (e) has become the subject of a Bail-In Action.

 

“Designated Lender” means, with respect to any Designating Lender, an Eligible Designee designated by it pursuant to Section 9.07(a) as a Designated Lender for purposes of this Agreement.

 

“Designated Lender Register” has the meaning set forth in Section 9.07(c).

 

“Designating Lender” means, with respect to each Designated Lender, the Lender that designated such Designated Lender pursuant to Section 9.07(a).

 

“Designation Agreement” has the meaning set forth in Section 9.07(a).

 

“Dollars” or “dollars” or “$” refers to lawful money of the United States of America.

 

“Domestic Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York City are authorized by law to close.

 

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“Domestic Lending Office” means, as to each Lender, its office located at its address set forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire as its Domestic Lending Office) or such other office as such Lender may hereafter designate as its Domestic Lending Office by notice to the Company and the Agent.

 

“EEA Financial Institution” means (a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Eligible Designee” means a special purpose corporation that (a) is organized under the laws of the United States or any state thereof, (b) is engaged in making, purchasing or otherwise investing in commercial loans in the ordinary course of its business and (c) issues (or the parent of which issues) commercial paper rated at least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by Moody’s.

 

“Environmental Laws” means any and all federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions, permits, concessions, grants, franchises, licenses, agreements and other governmental restrictions relating to the environment or the effect of the environment on human health or to emissions, discharges or releases of pollutants, contaminants, Hazardous Substances or wastes into the environment, including (without limitation) ambient air, surface water, ground water or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, Hazardous Substances or wastes or the clean-up or other remediation thereof.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

 

“Euro-Dollar Business Day” means any Domestic Business Day on which commercial banks are open for international business (including dealings in dollar deposits) in London.

 

“Euro-Dollar Lending Office” means, as to each Lender, its office, branch or affiliate located at its address set forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire as its Euro-Dollar Lending Office) or such other office, branch or affiliate of such Lender as it may hereafter designate as its Euro-Dollar Lending Office by notice to the Company and the Agent.

 

“Euro-Dollar Loan” means a Committed Loan that bears interest at a Euro-Dollar Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election.

 

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“Euro-Dollar Margin” means a rate per annum determined in accordance with the Pricing Schedule.

 

“Euro-Dollar Rate” means a rate of interest determined pursuant to Section 2.07(b) on the basis of the London Interbank Offered Rate.

 

“Euro-Dollar Reserve Percentage” means for any day that percentage (expressed as a decimal) which is in effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or any successor), for determining the maximum reserve requirement for a member bank of the Federal Reserve System in New York City with deposits exceeding $5,000,000,000 in respect of “Eurocurrency liabilities” (or in respect of any other category of liabilities which includes deposits by reference to which the interest rate on Euro-Dollar Loans is determined or any category of extensions of credit or other assets which includes loans by a non-United States office of any Lender to United States residents).

 

“Events of Default” has the meaning set forth in Section 6.01.

 

“Excluded Taxes” means (a) in the case of each Lender, each Issuing Lender and the Agent, Taxes imposed on or measured by its net income (however denominated), and franchise or similar Taxes imposed on it, by the jurisdiction under the laws of which such Lender, such Issuing Lender or the Agent (as the case may be) is organized or in which its principal executive office is located or any political subdivision thereof or by any State, possession or territory of the United States in which such Lender, such Issuing Lender or the Agent (as the case may be) is doing business, (b) in the case of each Lender or Issuing Lender, Taxes imposed on or measured by its net income (however denominated), and franchise or similar Taxes imposed on it, by the jurisdiction of such Lender’s or Issuing Lender’s Applicable Lending Office or any political subdivision thereof, (c) branch profits Tax imposed by the United States, (d) United States withholding Taxes to the extent imposed as a result of a Lender or Issuing Lender voluntarily designating a successor Applicable Lending Office, which has the effect of causing such Lender or such Issuing Lender to become subject to United States withholding Tax payments in excess of those in effect immediately prior to such designation, (e) Taxes resulting from FATCA, and (f) in the case of each Lender, each Issuing Lender and the Agent, Taxes imposed by any jurisdiction or any political subdivision thereof as a result of a connection between the Lender, the Issuing Lender or the Agent and such jurisdiction or political subdivision (other than a connection resulting solely from executing, delivering or performing its obligations or receiving a payment under, or enforcing, this Agreement).

 

“Existing 364-Day Credit Agreement” means the 364-Day Credit Agreement dated as of February 5, 2016, among the Company, the banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent, as amended and/or restated prior to the Closing Date.

 

“Existing 5-Year Credit Agreement” means the Five-Year Credit Agreement dated as of September 24, 2013, among the Company, the banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent, as amended and/or restated prior to the Closing Date.

 

“Existing Credit Agreements” means the Existing 5-Year Credit Agreement and the Existing 364-Day Credit Agreement.

 

“Extension Agreement” has the meaning set forth in Section 2.19(a).

 

“Facility Fee Rate” means the facility fee rate set forth in the Pricing Schedule.

 

“FATCA” means (a) Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version of the Internal Revenue Code), any current or

 

7











 

future regulations or official interpretations thereof and any agreements entered into pursuant to the foregoing and (b) any similar law adopted by any non-U.S. Governmental Authority pursuant to an intergovernmental agreement between such non-U.S. jurisdiction and the United States.

 

“FCPA” has the meaning set forth in Section 4.08.

 

“Federal Funds Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions (as determined in such manner as the NYFRB shall set forth on its public website from time to time) and published on the next succeeding Domestic Business Day by the NYFRB as the federal funds effective rate.

 

“Fee Letter” means the fee letter dated as of November 2, 2016, between the Company and JPMorgan Chase Bank, N.A.

 

“Fixed Rate Loans” means Euro-Dollar Loans or Competitive Bid Loans (excluding Competitive Bid LIBOR Loans bearing interest at the Base Rate pursuant to Section 8.01(a)) or any combination of the foregoing.

 

“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

 

“Funded Debt” of any Person means, at any date of computation, all indebtedness for borrowed money of such Person which by its terms matures more than 12 months after such date or which is extendible or renewable at the option of such Person to a time more than 12 months after such date; provided, however, that (a) Funded Debt shall include all obligations in respect of lease rentals which under GAAP appear on a balance sheet of such Person as a liability item other than a current liability, (b) in the case of the Company, Funded Debt shall not include Subordinated Debt and (c) outstanding preferred stock of a Restricted Subsidiary that is not owned by the Company or a Wholly-Owned Restricted Subsidiary shall be deemed to constitute a principal amount of Funded Debt equal to the par value or involuntary liquidation value, whichever amount is higher, of such preferred stock.

 

“GAAP” means generally accepted accounting principles as in effect from time to time, applied on a basis consistent (except for changes concurred in by the Company’s independent public accountants) with the most recent audited consolidated financial statements of the Company and its Consolidated Subsidiaries delivered to the Lenders; provided that Total Capitalization shall be determined without giving effect to implementation of Financial Accounting Standards Board Statement No. 158 (or its equivalent in the Accounting Standards Codification or any subsequent codification thereof); provided further that terms of an accounting or financial nature used herein shall be construed, and computations of amounts and ratios referred to herein shall be made without giving effect to any change to or modification of GAAP which would require the capitalization of leases (whether or not existing on the Closing Date) that would be characterized as “operating leases” under GAAP as in effect on the Closing Date.

 

“Governmental Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Group of Loans” means, at any time, a group of Loans consisting of (a) all Committed Loans which are Base Rate Loans at such time or (b) all Euro-Dollar Loans having the same Interest Period at such time; provided that, if a Committed Loan of any particular Lender is converted to or made as a Base

 

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Rate Loan pursuant to Article 8, such Loan shall be included in the same Group or Groups of Loans from time to time as it would have been in if it had not been so converted or made.

 

“Guarantee” by any Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Debt of any other Person; provided that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business.  The term “Guarantee” used as a verb has a corresponding meaning.

 

“Hazardous Substances” means any toxic, radioactive, caustic or otherwise hazardous substance, including petroleum, its derivatives and by-products and other hydrocarbons, or any substance having any constituent elements displaying any of the foregoing characteristics.

 

“Impacted Interest Period” has the meaning set forth in the definition of “London Interbank Offered Rate.”

 

“Indemnified Taxes” means Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Company under any Loan Document.

 

“Indemnitee” has the meaning set forth in Section 9.03(b).

 

“Information” has the meaning set forth in Section 9.12.

 

“Interest Period” means (a) with respect to each Euro-Dollar Loan, the period commencing on the date of borrowing specified in the applicable Notice of Borrowing or on the date specified in an applicable Notice of Interest Rate Election and ending one, two, three or six months thereafter, as the Company may elect in such notice; provided that:

 

(i)                                  any Interest Period which would otherwise end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Euro-Dollar Business Day; and

 

(ii)                              any Interest Period which begins on the last Euro-Dollar Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Euro-Dollar Business Day of a calendar month;

 

(b)                              with respect to each Competitive Bid LIBOR Borrowing, the period commencing on the date of borrowing specified in the applicable Notice of Borrowing and ending such whole number of months thereafter as the Company may elect in accordance with Section 2.03; provided that:

 

(i)                                  any Interest Period which would otherwise end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Euro-Dollar Business Day; and

 

(ii)                              any Interest Period which begins on the last Euro-Dollar Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Euro-Dollar Business Day of a calendar month;

 

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(c)                               with respect to each Competitive Bid Absolute Rate Borrowing, the period commencing on the date of borrowing specified in the applicable Notice of Borrowing and ending such number of days thereafter (but not less than 7 days) as the Company may elect in accordance with Section 2.03; provided that any Interest Period which would otherwise end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding Euro-Dollar Business Day;

 

provided further that no Interest Period applicable to any Loan may end after the Termination Date.

 

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended, or any successor statute.

 

“Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period (for which the LIBO Screen Rate is available) that is shorter than the Impacted Interest Period; and (b) the LIBO Screen Rate for the shortest period (for which that LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.

 

“Issuing Lender” means each Person listed on Schedule 2.18 and any other Lender that may from time to time after the date hereof agree to issue Letters of Credit hereunder as provided in Section 2.18(g), in each case in its capacity as an issuer of any Letters of Credit hereunder.  An Issuing Lender may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Lender, in which case the term “Issuing Lender” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.  When used with respect to a particular Letter of Credit, “Issuing Lender” means the Issuing Lender that issued or is issuing such Letter of Credit.

 

“Lender” means each bank or other institution listed on the signature pages hereof, each Assignee which becomes a Lender pursuant to Section 9.06(c), each Person that becomes a Lender pursuant to Section 2.19 and their respective successors.

 

“Lender Appointment Period” has the meaning set forth in Section 7.08.

 

“Letter of Credit” means a letter of credit to be issued hereunder by an Issuing Lender.

 

“Letter of Credit Commitment” means, with respect to each Issuing Lender, the commitment of such Issuing Lender to issue Letters of Credit hereunder.  The initial amount of each Issuing Lender’s Letter of Credit Commitment is set forth on Schedule 2.18, or if an Issuing Lender has entered into an Assignment and Assumption, the amount set forth for such Issuing Lender as its Letter of Credit Commitment in the Register maintained by the Administrative Agent.

 

“Letter of Credit Disbursement” means a payment made by an Issuing Lender pursuant to a Letter of Credit.

 

“Letter of Credit Liabilities” means, for any Lender and at any time, such Lender’s ratable participation in the sum of (a) the aggregate amount then owing by the Company in respect of amounts paid by Issuing Lenders upon drawings under Letters of Credit issued hereunder and (b) the aggregate amount then available for drawing under all outstanding Letters of Credit; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Letter of Credit document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such times.

 

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“LIBO Screen Rate” has the meaning set forth in the definition of “London Interbank Offered Rate.”

 

“LIBOR Auction” means a solicitation of Competitive Bid Quotes setting forth Competitive Bid Margins based on the London Interbank Offered Rate pursuant to Section 2.03.

 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind, or any other type of preferential arrangement that has substantially the same practical effect as a security interest, in respect of such asset.  For purposes hereof, the Company or any Subsidiary shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset.

 

“Loan” means a Committed Loan or a Competitive Bid Loan and “Loans” means Committed Loans or Competitive Bid Loans or any combination of the foregoing.

 

“Loan Documents” means this Agreement (including the schedules and exhibits hereto), any Notes issued to any Lender hereunder, any Letters of Credit and any agreement between the Company and any Issuing Lender regarding the applicable Issuing Lender’s Letter of Credit Commitment or the respective rights and obligations between the Company and such Issuing Lender in connection with the issuance of Letters of Credit.

 

“London Interbank Offered Rate” means, with respect to any Euro-Dollar Borrowing for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for Dollars for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Agent in its reasonable discretion; in each case the “LIBO Screen Rate”) at approximately 11:00 a.m. (London time) two Euro-Dollar Business Days prior to the commencement of such Interest Period; provided that if the LIBO Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided further that if the LIBO Screen Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”) then the London Interbank Offered Rate shall be the Interpolated Rate; provided that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Material Debt” means a Single Issue (other than the Notes) of the Company and/or one or more of its Subsidiaries in a principal amount exceeding $100,000,000.

 

“Moody’s” means Moody’s Investors Service, Inc. (and any successor thereto).

 

“Notes” means promissory notes of the Company, substantially in the form of Exhibit A hereto, evidencing the obligation of the Company to repay the Loans, and “Note” means any one of such promissory notes issued hereunder.

 

“Notice of Borrowing” means a Notice of Committed Borrowing (as defined in Section 2.02) or a Notice of Competitive Bid Borrowing (as defined in Section 2.03(f)).

 

“Notice of Interest Rate Election” has the meaning set forth in Section 2.09.

 

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“Notice of Issuance” has the meaning set forth in Section 2.18(b).

 

“NYFRB” means the Federal Reserve Bank of New York.

 

“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Domestic Business Day, for the immediately preceding Domestic Business Day); provided that if none of such rates are published for any day that is a Domestic Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Agent from a federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Other Taxes” has the meaning set forth in Section 8.04(b).

 

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight euro-dollar borrowings by U.S.-managed banking offices of depository institutions (as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time) and published on the next succeeding Domestic Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

 

“Parent” means, with respect to any Lender, any Person controlling such Lender.

 

“Participant” has the meaning set forth in Section 9.06(b).

 

“Participant Register” has the meaning set forth in Section 9.06(b).

 

“Patriot Act” means the USA Patriot Act, Title III of Pub. L. 107-56, signed into law on October 26, 2001.

 

“Payment Date” has the meaning set forth in Section 2.18(c).

 

“Person” means an individual, a vessel, a corporation, a partnership, an association, a trust or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

 

“Pricing Schedule” means the Pricing Schedule attached hereto as Schedule 2.01.

 

“Prime Rate” means the rate of interest publicly announced by JPMorgan Chase Bank, N.A. from time to time as its prime rate in effect at its office located at 270 Park Avenue, New York, New York.

 

“Principal Property” means any real property (including buildings and other improvements) of the Company or any Restricted Subsidiary whether currently owned or hereafter acquired (other than any property hereafter acquired for the control or abatement of atmospheric pollutants or contaminants or water, noise, odor or other pollution, or for purposes of developing a cogeneration facility or a small power production facility as such terms are defined in the Public Utility Regulatory Policies Act of 1978, as amended) which (a) has, at any date of determination, a book value in excess of 5% of Shareowners’ Equity and (b) in the opinion of the board of directors of the Company (or any duly authorized committee thereof) is of material importance to the total business conducted by the Company and its Restricted Subsidiaries as a whole.

 

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“Quarterly Payment Dates” means each March 31, June 30, September 30 and December 31.

 

“Register” has the meaning set forth in Section 9.06(c).

 

“Regulation T, U or X” means Regulation T, U or X of the Board of Governors of the Federal Reserve System, as in effect from time to time.

 

“Reimbursement Obligation” has the meaning set forth in Section 2.18(c).

 

“Related Party” has the meaning set forth in Section 9.03(b).

 

“Required Lenders” means at any time Lenders having more than 50% of the aggregate amount of the Commitments or, if the Commitments shall have been terminated, holding more than 50% of the aggregate unpaid principal amount of the Loans, in each case exclusive of Defaulting Lenders.

 

“Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted Subsidiary.

 

“Revolving Credit Period” means the period from and including the Closing Date to but excluding the Termination Date.

 

“S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc. (or any successor thereto).

 

“Sale and Lease-Back Transaction” has the meaning set forth in Section 5.08.

 

“Sanctioned Country” has the meaning set forth in Section 4.08.

 

“Sanctioned Persons” has the meaning set forth in Section 4.08.

 

“Sanctions” has the meaning set forth in Section 4.08.

 

“Secured Debt” means indebtedness for borrowed money of the Company or a Restricted Subsidiary (other than indebtedness owed by a Restricted Subsidiary to the Company, by a Restricted Subsidiary to another Restricted Subsidiary or by the Company to a Restricted Subsidiary), which is secured by (a) a mortgage or other lien on any Principal Property of the Company or a Restricted Subsidiary or (b) a pledge, lien or other security interest on any shares of stock or indebtedness of a Restricted Subsidiary.  The amount of Secured Debt at any time outstanding shall be the amount then owing thereon by the Company or a Restricted Subsidiary.

 

“Shareowners’ Equity” means, at any date of computation, the aggregate of capital stock, capital surplus and earned surplus, after deducting the cost of shares of capital stock of the Company held in its treasury, of the Company and its Restricted Subsidiaries, as consolidated and determined in accordance with GAAP; provided that any determination of Shareowners’ Equity for purposes of Article 5 shall be made without giving effect to the implementation of Financial Accounting Standards Board Statement No. 158 (or its equivalent in the Accounting Standards Codification or any subsequent codification thereof).

 

“Single Issue” means indebtedness for borrowed money arising in a single transaction or a series of related transactions.  Indebtedness issued in discrete offerings but governed by a single shelf indenture shall not be aggregated as a Single Issue, but indebtedness owing to multiple lenders under parallel

 

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agreements comprising a single private placement and indebtedness arising from multiple takedowns under a single or a series of related commitments from one or more lenders shall be so aggregated.

 

“Stepdown Date” has the meaning set forth in Section 5.05.

 

“Stop Issuance Notice” has the meaning set forth in Section 2.18(f).

 

“Subordinated Debt” means any unsecured Debt of the Company which: (a) has a final maturity subsequent to the Termination Date; (b) does not provide for mandatory payment or retirement prior to said date, whether by means of serial maturities or sinking fund or other analogous provisions or plan, fixed or contingent, requiring, or which on the happening of a contingency may require, the payment or retirement of such Debt in amounts which as of any particular time would aggregate more than such portion of the original principal amount thereof as is obtained by multiplying such original principal amount by a fraction the numerator of which shall be the number of months elapsed from the date of creation of such Debt to such time and the denominator of which shall be the number of months from the date of creation thereof to the final maturity thereof; and (c) is expressly made subordinate and junior in right of payment to the Loans and such other Debt of the Company (except other Subordinated Debt) as may be specified in the instruments evidencing the Subordinated Debt or the indenture or other similar instrument under which it is issued (which indenture or other instrument shall be binding on all holders of such Subordinated Debt).

 

“Subsidiary” means, as to any Person, any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person; unless otherwise specified, “Subsidiary” means a Subsidiary of the Company.

 

“Syndication Agents” means Citibank, N.A. and Wells Fargo Bank, N.A., in their capacities as syndication agents.

 

“Taxes” has the meaning set forth in Section 8.04(a).

 

“Termination Date” means the date that is five years from the Closing Date; provided that if the Termination Date is extended pursuant to Section 2.19, then the Termination Date shall be any such later date or, in any such case, if such date is not a Euro-Dollar Business Day, the next preceding Euro-Dollar Business Day.

 

“Total Capitalization” means, at any date, the sum (without duplication) of (a) Consolidated Debt as of such date and (b) all preferred stock of the Company and its Restricted Subsidiaries and Shareowners’ Equity as of the date of the Company’s most recent financial statements referred to in Section 4.04 or delivered pursuant to Section 5.01.

 

“Total Outstanding Amount” means, at any time, the sum (without duplication) of (a) the aggregate outstanding principal amount of the Loans (including both Committed Loans and Competitive Bid Loans) determined at such time after giving effect, if one or more Loans are being made at such time, to any substantially concurrent application of the proceeds thereof to repay one or more other Loans and (b) the aggregate amount of the Letter of Credit Liabilities of all Lenders at such time.

 

“United States” means the United States of America, including the States and the District of Columbia, but excluding its territories and possessions.

 

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“Unrestricted Subsidiary” means (a) any Subsidiary which, in accordance with the provisions of this Agreement, has been designated by the Company as an Unrestricted Subsidiary after the Closing Date, unless and until such Subsidiary shall, in accordance with the provisions of this Agreement, be designated by the Company as a Restricted Subsidiary and (b) any corporation of which any one or more Unrestricted Subsidiaries directly or indirectly own outstanding shares of capital stock having voting power sufficient to elect, under ordinary circumstances (not dependent upon the happening of a contingency), a majority of the directors.

 

“Wholly-Owned Restricted Subsidiary” means a Restricted Subsidiary all of the outstanding capital stock of which, other than directors’ qualifying shares, and all of the Funded Debt of which, shall at the time be owned by the Company or by one or more Wholly-Owned Restricted Subsidiaries, or by the Company in conjunction with one or more Wholly-Owned Restricted Subsidiaries.

 

“Withholding Agent” has the meaning set forth in Section 8.04(a).

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

Section 1.02.  Accounting Terms and Determinations.  Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared in accordance with GAAP.  Notwithstanding the foregoing, if the Company at any time adopts a change in revenue recognition standards under GAAP, the Company shall notify the Agent promptly upon such adoption and, if the Agent or the Company determines in good faith that such change will change the level of the Debt to Total Capitalization Ratio from that as determined prior to such change, the Company and the Required Lenders shall promptly negotiate in good faith to amend Section 5.05 hereof in order to adjust the levels provided for compliance such that, after taking into account the impact of such new revenue recognition standards, the levels provided for in Section 5.05 shall provide a similar limitation on the Company as provided for immediately prior to such adoption.  Unless and until any such amendment becomes effective pursuant to the terms of this Agreement (or if the Agent and the Company determine that such change has no effect on the level of the Debt to Total Capitalization Ratio), the Debt to Total Capitalization Ratio shall be determined and interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective.

 

Section 1.03.  Types of Borrowings.  The term “Borrowing” denotes the aggregation of Loans of one or more Lenders to be made to the Company pursuant to Article 2 on a single date, all of which Loans are of the same type (subject to Article 8) and, except in the case of Base Rate Loans, have the same initial Interest Period.  Borrowings are classified for purposes of this Agreement either by reference to the pricing of Loans comprising such Borrowing (e.g., a “Euro-Dollar Borrowing” is a Borrowing comprised of Euro-Dollar Loans) or by reference to the provisions of Article 2 under which participation therein is determined (i.e., a “Committed Borrowing” is a Borrowing under Section 2.01 in which all Lenders participate in proportion to their Commitments, while a “Competitive Bid Borrowing” is a Borrowing under Section 2.03 in which the Lender participants are determined on the basis of their bids in accordance therewith).

 

Section 1.04.  Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be

 

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construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (i) any definition of or reference to any Loan Document, agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in the other Loan Documents), (ii) any reference herein to any person shall be construed to include such person’s successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (v) any reference to any law or regulation herein shall refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

ARTICLE 2

THE CREDITS

 

Section 2.01.  Commitments to Lend.  (a) During the Revolving Credit Period each Lender severally agrees, on the terms and conditions set forth in this Agreement, to make Loans to the Company pursuant to this Section 2.01(a) from time to time in amounts such that (i) the aggregate principal amount of Committed Loans by such Lender at any one time outstanding plus the aggregate amount of its Letter of Credit Liabilities at such time shall not exceed the amount of its Commitment and (ii) the Total Outstanding Amount shall not exceed the aggregate amount of the Commitments.  Within the foregoing limits, the Company may borrow under this Section 2.01(a), repay, or to the extent permitted by Section 2.12, prepay Loans and reborrow at any time during the Revolving Credit Period under this Section 2.01(a).

 

(b)                    Each Borrowing under this Section 2.01 shall be in an aggregate principal amount of $25,000,000 or any larger multiple of $1,000,000 (except that any such Borrowing may be in the aggregate amount available in accordance with Section 3.03(b)) and shall be made from the several Lenders ratably in proportion to their respective Commitments.

 

Section 2.02.  Notice of Committed Borrowing.  The Company shall give the Agent notice (a “Notice of Committed Borrowing”) not later than 1:00 p.m. (New York City time) on (x) the date of each Base Rate Borrowing and (y) the third Euro-Dollar Business Day before each Euro-Dollar Borrowing, specifying:

 

(a)                     the date of such Borrowing, which shall be a Domestic Business Day in the case of a Base Rate Borrowing or a Euro-Dollar Business Day in the case of a Euro-Dollar Borrowing,

 

(b)                    the aggregate amount of such Borrowing,

 

(c)                     whether the Loans comprising such Borrowing are to bear interest initially at the Base Rate or a Euro-Dollar Rate, and

 

(d)                    in the case of a Euro-Dollar Borrowing, the duration of the initial Interest Period applicable thereto, subject to the provisions of the definition of Interest Period.

 

Section 2.03.  Competitive Bid Borrowings.  (a) The Competitive Bid Option.  In addition to Committed Borrowings pursuant to Section 2.01, the Company may, as set forth in this Section 2.03, request the Lenders during the Revolving Credit Period to make offers to make Competitive Bid Loans to

 

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the Company.  The Lenders may, but shall have no obligation to, make such offers and the Company may, but shall have no obligation to, accept any such offers in the manner set forth in this Section 2.03.

 

(b)                    Competitive Bid Quote Request.  When the Company wishes to request offers to make Competitive Bid Loans under this Section 2.03, it shall transmit to the Agent by telex or facsimile transmission a Competitive Bid Quote Request substantially in the form of Exhibit B hereto so as to be received no later than 1:00 p.m. (New York City time) on (x) the fifth Euro-Dollar Business Day prior to the date of Borrowing proposed therein, in the case of a LIBOR Auction or (y) the Domestic Business Day next preceding the date of Borrowing proposed therein, in the case of an Absolute Rate Auction (or, in either case, such other time or date as the Company and the Agent shall have mutually agreed and shall have notified to the Lenders not later than the date of the Competitive Bid Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective) specifying:

 

(i)                        the proposed date of Borrowing, which shall be a Euro-Dollar Business Day in the case of a LIBOR Auction or a Domestic Business Day in the case of an Absolute Rate Auction,

 

(ii)                    the aggregate amount of such Borrowing, which shall be $25,000,000 or a larger multiple of $1,000,000,

 

(iii)                the duration of the Interest Period applicable thereto, subject to the provisions of the definition of Interest Period, and

 

(iv)                whether the Competitive Bid Quotes requested are to set forth a Competitive Bid Margin or a Competitive Bid Absolute Rate.

 

The Company may request offers to make Competitive Bid Loans for more than one Interest Period in a single Competitive Bid Quote Request.  No Competitive Bid Quote Request shall be given within five Euro-Dollar Business Days (or such other number of days as the Company and the Agent may agree) of any other Competitive Bid Quote Request.

 

(c)                     Invitation for Competitive Bid Quotes.  Promptly upon receipt of a Competitive Bid Quote Request, the Agent shall send to the Lenders by telex or facsimile transmission an Invitation for Competitive Bid Quotes substantially in the form of Exhibit C hereto, which shall constitute an invitation by the Company to each Lender to submit Competitive Bid Quotes offering to make the Competitive Bid Loans to which such Competitive Bid Quote Request relates in accordance with this Section 2.03.

 

(d)                    Submission and Contents of Competitive Bid Quotes.  (i) Each Lender may submit a Competitive Bid Quote containing an offer or offers to make Competitive Bid Loans in response to any Invitation for Competitive Bid Quotes.  Each Competitive Bid Quote must comply with the requirements of this subsection (d) and must be submitted to the Agent by telex or facsimile transmission at its offices specified in or pursuant to Section 9.01 not later than (x) 2:00 p.m. (New York City time) on the fourth Euro-Dollar Business Day prior to the proposed date of Borrowing, in the case of a LIBOR Auction or (y) 9:30 a.m. (New York City time) on the proposed date of Borrowing, in the case of an Absolute Rate Auction (or, in either case, such other time or date as the Company and the Agent shall have mutually agreed and shall have notified to the Lenders not later than the date of the Competitive Bid Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective); provided that Competitive Bid Quotes submitted by the Agent (or any affiliate of the Agent) in the capacity of a Lender may be submitted, and may only be submitted, if the Agent or such affiliate notifies the Company of the terms of the offer or offers contained therein not later than (x) one hour prior to the deadline for the other Lenders, in the case of a LIBOR Auction or (y) 15 minutes prior to the deadline for the other

 

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Lenders, in the case of an Absolute Rate Auction.  Subject to Articles 3 and 6, any Competitive Bid Quote so made shall be irrevocable except with the written consent of the Agent given on the instructions of the Company.

 

(ii)                    Each Competitive Bid Quote shall be in substantially the form of Exhibit D hereto and shall in any case specify:

 

(A)                  the proposed date of Borrowing,

 

(B)                   the principal amount of the Competitive Bid Loan for which each such offer is being made, which principal amount (w) may be greater than or less than the Commitment of the quoting Lender, (x) must be $5,000,000 or a larger multiple of $1,000,000, (y) may not exceed the principal amount of Competitive Bid Loans for which offers were requested and (z) may be subject to an aggregate limitation as to the principal amount of Competitive Bid Loans for which offers being made by such quoting Lender may be accepted,

 

(C)                   in the case of a LIBOR Auction, the margin above or below the applicable London Interbank Offered Rate (the “Competitive Bid Margin”) offered for each such Competitive Bid Loan, expressed as a percentage (specified to the nearest 1/10,000th of 1%) to be added to or subtracted from such base rate,

 

(D)                  in the case of an Absolute Rate Auction, the rate of interest per annum (specified to the nearest 1/10,000th of 1%) (the “Competitive Bid Absolute Rate”) offered for each such Competitive Bid Loan, and

 

(E)                    the identity of the quoting Lender.

 

A Competitive Bid Quote may set forth up to five separate offers by the quoting Lender with respect to each Interest Period specified in the related Invitation for Competitive Bid Quotes.

 

(iii)                Any Competitive Bid Quote shall be disregarded if it:

 

(A)                  is not substantially in conformity with Exhibit D hereto or does not specify all of the information required by subsection (d)(ii);

 

(B)                   contains qualifying, conditional or similar language;

 

(C)                   proposes terms other than or in addition to those set forth in the applicable Invitation for Competitive Bid Quotes; or

 

(D)                  arrives after the time set forth in subsection (d)(i).

 

(e)                     Notice to Company.  The Agent shall promptly notify the Company of the terms (x) of any Competitive Bid Quote submitted by a Lender that is in accordance with subsection (d) and (y) of any Competitive Bid Quote that amends, modifies or is otherwise inconsistent with a previous Competitive Bid Quote submitted by such Lender with respect to the same Competitive Bid Quote Request.  Any such subsequent Competitive Bid Quote shall be disregarded by the Agent unless such subsequent Competitive Bid Quote is submitted solely to correct a manifest error in such former Competitive Bid Quote.  The Agent’s notice to the Company shall specify (i) the aggregate principal amount of Competitive Bid Loans for which offers have been received for each Interest Period specified in the related Competitive Bid

 

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Quote Request, (ii) the respective principal amounts and Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may be, so offered and (iii) if applicable, limitations on the aggregate principal amount of Competitive Bid Loans for which offers in any single Competitive Bid Quote may be accepted.

 

(f)                      Acceptance and Notice by Company.  Not later than 10:30 a.m. (New York City time) on (x) the third Euro-Dollar Business Day prior to the proposed date of Borrowing, in the case of a LIBOR Auction or (y) the proposed date of Borrowing, in the case of an Absolute Rate Auction (or, in either case, such other time or date as the Company and the Agent shall have mutually agreed and shall have notified to the Lenders not later than the date of the Competitive Bid Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective), the Company shall notify the Agent of its acceptance or non-acceptance of the offers so notified to it pursuant to subsection  (e).  In the case of acceptance, such notice (a “Notice of Competitive Bid Borrowing”) shall specify the aggregate principal amount of offers for each Interest Period that are accepted.  A failure by the Company to notify the Agent as aforesaid shall constitute non-acceptance of the offers so notified to it.  The Company may accept any Competitive Bid Quote in whole or in part; provided that:

 

(i)                        the aggregate principal amount of each Competitive Bid Borrowing may not exceed the applicable amount set forth in the related Competitive Bid Quote Request,

 

(ii)                    the principal amount of each Competitive Bid Borrowing must be $25,000,000 or a larger multiple of $1,000,000,

 

(iii)                acceptance of offers may only be made on the basis of ascending Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may be,

 

(iv)                the Company may not accept any offer that is described in subsection (d)(iii) or that otherwise fails to comply with the requirements of this Agreement, and

 

(v)                    immediately after such Competitive Bid Borrowing is made the Total Outstanding Amount shall not exceed the aggregate amount of the Commitments.

 

(g)                     Allocation by Agent.  If offers are made by two or more Lenders with the same Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may be, for a greater aggregate principal amount than the amount in respect of which such offers are accepted for the related Interest Period, the principal amount of Competitive Bid Loans in respect of which such offers are accepted shall be allocated by the Agent among such Lenders as nearly as possible (in multiples of $1,000,000, as the Agent may deem appropriate) in proportion to the aggregate principal amounts of such offers.  Determinations by the Agent of the amounts of Competitive Bid Loans shall be conclusive in the absence of manifest error.

 

Section 2.04.  Notice to Lenders; Funding of Loans.  (a) Upon receipt of a Notice of Borrowing, the Agent shall promptly notify each Lender of the contents thereof and of such Lender’s share (if any) of such Borrowing and such Notice of Borrowing shall not thereafter be revocable by the Company.

 

(b)                    Not later than 12:00 Noon (New York City time) on the date of each Borrowing (or, in the case of a Base Rate Borrowing, not later than 2:00 p.m. (New York City time) on the date of such Borrowing), each Lender participating therein shall make available its share of such Borrowing, in Federal or other funds immediately available in New York City, to the Agent at its address referred to in Section 9.01.  Unless the Agent determines that any applicable condition specified in Article 3 has not

 

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been satisfied, the Agent will make the funds so received from the Lenders available to the Company at the Agent’s aforesaid address.

 

(c)                     Unless the Agent shall have received notice from a Lender prior to the date of any Borrowing (or, in the case of a Base Rate Borrowing, prior to 2:00 p.m. (New York City time) on the date of such Borrowing) that such Lender will not make available to the Agent such Lender’s share of such Borrowing, the Agent may assume that such Lender has made such share available to the Agent on the date of such Borrowing in accordance with subsection (b) of this Section 2.04 and the Agent may, in reliance upon such assumption, make available to the Company on such date a corresponding amount.  If and to the extent that such Lender shall not have so made such share available to the Agent, such Lender and the Company severally agree to repay to the Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Company until the date such amount is repaid to the Agent, at (i) in the case of the Company, a rate per annum equal to the higher of the Federal Funds Rate and the interest rate applicable thereto pursuant to Section 2.07 and (ii) in the case of such Lender, the Federal Funds Rate.  If such Lender shall repay to the Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Loan included in such Borrowing for purposes of this Agreement.

 

Section 2.05.  Evidence of Debt.  (a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Company to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

 

(b)                    The entries made in the accounts maintained pursuant to clause (a) of this Section 2.05 shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Company to repay the Loans in accordance with the terms of this Agreement.

 

(c)                     The Company agrees that, upon the request to the Agent by any Lender, the Company will promptly execute and deliver to such Lender a Note.

 

Section 2.06.  Maturity of Loans.  (a) Each Committed Loan shall mature, and the principal amount thereof shall be due and payable (together with interest accrued thereon) on the Termination Date.

 

(b)                    Each Competitive Bid Loan shall mature, and the principal amount thereof shall be due and payable (together with accrued interest thereon) on the last day of the Interest Period applicable thereto.

 

Section 2.07.  Interest Rates.  (a) Each Base Rate Loan shall bear interest on the outstanding principal amount thereof, for each day from the date such Loan is made until it becomes due, at a rate per annum equal to the sum of the Base Rate Margin and the Base Rate for such day.  Such interest shall be payable at maturity, quarterly in arrears on each Quarterly Payment Date and, with respect to the principal amount of any Base Rate Loan that is prepaid or converted to a Euro-Dollar Loan, on the date of such prepayment or conversion.  Any overdue principal of or interest on any Base Rate Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the rate otherwise applicable to Base Rate Loans for such day.

 

(b)                    Each Euro-Dollar Loan shall bear interest on the outstanding principal amount thereof, for each day during each Interest Period applicable thereto, at a rate per annum equal to the sum of the Euro-Dollar Margin for such day plus the London Interbank Offered Rate applicable to such Interest Period.  Such interest shall be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day thereof.

 

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(c)                     Any overdue principal of or interest on any Euro-Dollar Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the Euro-Dollar Margin for such day plus the London Interbank Offered Rate applicable to the Interest Period for such Loan (or, if the circumstances described in clause (a) or (b) of Section 8.01 shall exist, at a rate per annum equal to the sum of 2% plus the rate applicable to Base Rate Loans for such day).

 

(d)                    Subject to Section 8.01(a), each Competitive Bid LIBOR Loan shall bear interest on the outstanding principal amount thereof, for the Interest Period applicable thereto, at a rate per annum equal to the sum of the London Interbank Offered Rate for such Interest Period (determined in accordance with Section 2.07(b) as if the related Competitive Bid LIBOR Borrowing were a Committed Euro-Dollar Borrowing) plus (or minus) the Competitive Bid Margin quoted by the Lender making such Loan in accordance with Section 2.03.  Each Competitive Bid Absolute Rate Loan shall bear interest on the outstanding principal amount thereof, for the Interest Period applicable thereto, at a rate per annum equal to the Competitive Bid Absolute Rate quoted by the Lender making such Loan in accordance with Section 2.03.  Such interest shall be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day thereof.  Any overdue principal of or interest on any Competitive Bid Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the Base Rate for such day.

 

(e)                     The Agent shall determine each interest rate applicable to the Loans hereunder.  The Agent shall give prompt notice to the Company and the participating Lenders of each rate of interest so determined, and its determination thereof shall be conclusive in the absence of manifest error.

 

Section 2.08.  Method of Electing Interest Rates.  (a) The Loans included in each Committed Borrowing shall bear interest initially at the type of rate specified by the Company in the applicable Notice of Committed Borrowing.  Thereafter, the Company may from time to time elect to change or continue the type of interest rate borne by each Group of Loans (subject to Section 2.08(d) and the provisions of Article 8), as follows:

 

(i)                        if such Loans are Base Rate Loans, the Company may elect to convert such Loans to Euro-Dollar Loans as of any Euro-Dollar Business Day; and

 

(ii)                    if such Loans are Euro-Dollar Loans, the Company may elect to convert such Loans to Base Rate Loans or continue such Loans as Euro-Dollar Loans for an additional Interest Period, in each case as of the last day of the then current Interest Period applicable thereto.

 

Each such election shall be made by delivering a notice (a “Notice of Interest Rate Election”) to the Agent not later than 12:00 noon (New York City time) on the third Euro-Dollar Business Day before the conversion or continuation selected in such notice is to be effective.  A Notice of Interest Rate Election may, if it so specifies, apply to only a portion of the aggregate principal amount of the relevant Group of Loans; provided that (i) such portion is allocated ratably among the Loans comprising such Group and (ii) the portion to which such Notice applies, and the remaining portion to which it does not apply, are each at least $25,000,000 (unless such portion is comprised of Base Rate Loans).  If no such notice is timely received before the end of an Interest Period for any Group of Euro-Dollar Loans, the Company shall be deemed to have elected that, at the end of such Interest Period, such Group of Loans be continued as Euro-Dollar Loans for an additional Interest Period of one month (subject to the provisions of the definition of Interest Period).

 

(b)                    Each Notice of Interest Rate Election shall specify:

 

(i)                        the Group of Loans (or portion thereof) to which such notice applies;

 

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(ii)                    the date on which the conversion or continuation selected in such notice is to be effective, which shall comply with the applicable clause of Section 2.08(a);

 

(iii)                if the Loans comprising such Group are to be converted, the new type of Loans and, if the Loans resulting from such conversion are to be Euro-Dollar Loans, the duration of the next succeeding Interest Period applicable thereto; and

 

(iv)                if such Loans are to be continued as Euro-Dollar Loans for an additional Interest Period, the duration of such additional Interest Period.

 

Each Interest Period specified in a Notice of Interest Rate Election shall comply with the provisions of the definition of Interest Period.

 

(c)                     Promptly after receiving a Notice of Interest Rate Election from the Company pursuant to Section 2.08(a), the Agent shall notify each Lender of the contents thereof and such notice shall not thereafter be revocable by the Company.

 

(d)                    The Company shall not be entitled to elect to convert any Committed Loans to, or continue any Committed Loans for an additional Interest Period as, Euro-Dollar Loans if (i) the aggregate principal amount of any Group of Euro-Dollar Loans created or continued as a result of such election would be less than $25,000,000 or (ii) a Default shall have occurred and be continuing when the Company delivers notice of such election to the Agent.

 

(e)                     If any Committed Loan is converted to a different type of Loan, the Company shall pay, on the date of such conversion, the interest accrued to such date on the principal amount being converted.

 

Section 2.09.  Facility Fee.  (a) The Company shall pay to the Agent for the account of the Lenders ratably a facility fee at the Facility Fee Rate.  Such facility fee shall accrue (i) from and including the Closing Date to but excluding the Termination Date (or earlier date of termination of the Commitments in their entirety), on the Aggregate Commitment Amount on each day and (ii) from and including the Termination Date or such earlier date of termination to but excluding the date the Loans shall be repaid in their entirety, on the daily Total Outstanding Amount.  As used above, “Aggregate Commitment Amount” means, on any date, (i) if the Acquisition Increase Termination Date has not occurred or the Acquisition Increase Date has occurred, the sum of (x) the aggregate amount of the Initial Commitment Amounts (as defined in the definition of “Commitment”) and (y) the aggregate amount of the Acquisition Increase Date Adjustments, whether used or unused and whether or not the Acquisition Increase Date has occurred, on such date and (ii) if the Acquisition Increase Termination Date has occurred without the Acquisition Increase Date occurring, the aggregate amount of the Initial Commitment Amounts, whether used or unused, on such date.

 

(b)                    The Company shall pay (i) to the Agent for the account of the Lenders ratably a letter of credit fee accruing daily on the aggregate undrawn amount of all outstanding Letters of Credit at a rate per annum equal to the Euro-Dollar Margin for such day and (ii) to each Issuing Lender for its own account, a letter of credit fronting fee accruing daily on the aggregate amount then available for drawing under all Letters of Credit issued by such Issuing Lender at such rate as may be mutually agreed (and without need of consent or agreement from any other party) between the Company and such Issuing Lender from time to time.

 

(c)                     Accrued fees under this Section 2.09 shall be payable quarterly in arrears on each Quarterly Payment Date, and upon the date of termination of the Commitments in their entirety (and, if later, the date the Loans shall be repaid in their entirety).

 

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Section 2.10.  Optional Termination or Reduction of Commitments.  During the Revolving Credit Period, the Company may, upon at least one Domestic Business Days’ notice to the Agent, (i) terminate the Commitments at any time, if no Loans or Letter of Credit Liabilities are outstanding at such time or (ii) ratably (except as otherwise provided in Section 2.20) reduce from time to time by an aggregate amount of $25,000,000 or any larger multiple thereof, the aggregate amount of the Commitments in excess of the Total Outstanding Amount.  Commitments terminated or reduced pursuant to this Section 2.10 may not be reinstated.

 

Section 2.11.  Scheduled Termination of Commitments.  The Commitments shall terminate on the Termination Date.

 

Section 2.12.  Optional Prepayments.  (a) Subject in the case of any Euro-Dollar Loans to Section 2.14, the Company may (i) upon at least one Domestic Business Day’s notice to the Agent, prepay any Group of Base Rate Loans (or any Competitive Bid Borrowing bearing interest at the Base Rate pursuant to Section 8.01(a)) or (ii) upon at least one Euro-Dollar Business Day’s notice to the Agent, prepay any Group of Euro-Dollar Loans, in each case in whole at any time, or from time to time in part in amounts aggregating $25,000,000 or any larger multiple of $1,000,000, by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment.  Each such optional prepayment shall be applied to prepay ratably the Loans of the several Lenders included in such Group (or Borrowing), except as otherwise provided in Section 2.20.

 

(b)                    Except as provided in Section 2.12(a), the Company may not prepay all or any portion of the principal amount of any Competitive Bid Loan prior to the maturity thereof.

 

(c)                     Upon receipt of a notice of prepayment pursuant to this Section 2.12, the Agent shall promptly notify each Lender of the contents thereof and of such Lender’s ratable share (if any) of such prepayment and such notice shall not thereafter be revocable by the Company.

 

Section 2.13.  General Provisions as to Payments.  (a) The Company shall make each payment of principal of, and interest on, the Loans and of fees hereunder, not later than 12:00 Noon (New York City time) on the date when due, in Federal or other funds immediately available in New York City, to the Agent at its address referred to in Section 9.01, without set-off or counterclaim.  The Agent will promptly distribute to each Lender its ratable share of each such payment received by the Agent for the account of the Lenders.  Whenever any payment of principal of, or interest on, the Base Rate Loans or of fees shall be due on a day which is not a Domestic Business Day, the date for payment thereof shall be extended to the next succeeding Domestic Business Day.  Whenever any payment of principal of, or interest on, the Euro-Dollar Loans shall be due on a day which is not a Euro-Dollar Business Day, the date for payment thereof shall be extended to the next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case the date for payment thereof shall be the next preceding Euro-Dollar Business Day.  Whenever any payment of principal of, or interest on, the Competitive Bid Loans shall be due on a day which is not a Euro-Dollar Business Day, the date for payment thereof shall be extended to the next succeeding Euro-Dollar Business Day.  If the date for any payment of principal is extended by operation of law or otherwise, interest thereon shall be payable for such extended time.

 

(b)                    Unless the Agent shall have received notice from the Company prior to the date on which any payment is due to the Lenders hereunder that the Company will not make such payment in full, the Agent may assume that the Company has made such payment in full to the Agent on such date and the Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender.  If and to the extent that the Company shall not have so made such payment, each Lender shall repay to the Agent forthwith on demand such amount

 

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distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Agent, at the Federal Funds Rate.

 

Section 2.14.  Funding Losses.  If the Company makes any payment of principal with respect to any Fixed Rate Loan or any Fixed Rate Loan is converted to a different type of Loan (whether such payment or conversion is pursuant to Article 2, 6 or 8 or otherwise) on any day other than the last day of the Interest Period applicable thereto, or if the Company fails to borrow, prepay, convert or continue any Fixed Rate Loans after notice has been given to any Lender in accordance with Section 2.04(a), 2.08(c) or 2.12(c), the Company shall reimburse each Lender within 15 days after demand for any resulting loss or expense incurred by it (or by an existing or prospective Participant in the related Loan), including (without limitation) any loss incurred in obtaining, liquidating or employing deposits from third parties, but excluding loss of margin for the period after any such payment or conversion or failure to borrow, prepay, convert or continue; provided that such Lender shall have delivered to the Company a certificate as to the amount of such loss or expense, which certificate shall be conclusive in the absence of manifest error.

 

Section 2.15.  Computation of Interest and Fees.  Interest based on the Prime Rate hereunder shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and paid for the actual number of days elapsed (including the first day but excluding the last day).  All other interest and fees shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day).

 

Section 2.16.  Regulation D Compensation.  Each Lender may require the Company to pay, contemporaneously with each payment of interest on the Euro-Dollar Loans, additional interest on the related Euro-Dollar Loan of such Lender at a rate per annum determined by such Lender up to but not exceeding the excess of (i) (A) the applicable London Interbank Offered Rate divided by (B) one minus the Euro-Dollar Reserve Percentage over (ii) the applicable London Interbank Offered Rate.  Any Lender wishing to require payment of such additional interest (x) shall so notify the Company and the Agent, in which case such additional interest on the Euro-Dollar Loans of such Lender shall be payable to such Lender at the place indicated in such notice with respect to each Interest Period commencing at least three Euro-Dollar Business Days after the giving of such notice and (y) shall notify the Company at least five Euro-Dollar Business Days prior to each date on which interest is payable on the Euro-Dollar Loans of the amount then due it under this Section 2.16.

 

Section 2.17.  [Reserved]

 

Section 2.18.  Letters of Credit.

 

(a)                     Commitment to Issue Letters of Credit.  Subject to the terms and conditions hereof, each Issuing Lender agrees to issue Letters of Credit from time to time from and after the Closing Date and before the Termination Date upon the request of the Company; provided that, immediately after each Letter of Credit is issued (i) the Total Outstanding Amount shall not exceed the aggregate amount of the Commitments, (ii) unless otherwise agreed by the applicable Issuing Lender, the aggregate amount of Letter of Credit Liabilities attributable to Letters of Credit issued by the applicable Issuing Lender at such time shall not exceed such Issuing Lender’s Letter of Credit Commitment and (iii) the aggregate amount of the Letter of Credit Liabilities shall not exceed $300,000,000.  Upon the date of issuance by an Issuing Lender of a Letter of Credit, such Issuing Lender shall be deemed, without further action by any party hereto, to have sold to each Lender, and each Lender shall be deemed, without further action by any party hereto, to have purchased from the applicable Issuing Lender, a participation in such Letter of Credit and the related Letter of Credit Liabilities in the proportion its respective Commitment bears to the aggregate

 

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Commitments.  If the terms and conditions of any form of letter of credit application or other agreement submitted by the Company to, or entered into by the Lender relating to any Letters of Credit are not consistent with the terms and conditions of this Agreement, the terms and conditions of this Agreement shall control.

 

(b)                    Method for Issuance; Terms; Extensions.

 

(i)                        The Company shall give the applicable Issuing Lender notice at least three Domestic Business Days (or such shorter notice as may be acceptable to such Issuing Lender in its discretion) prior to the requested issuance of a Letter of Credit (or, in the case of renewal or extension, prior to the applicable Issuing Lender’s deadline for notice of nonextension) specifying the date such Letter of Credit is to be issued, and describing the terms of such Letter of Credit and the nature of the transactions to be supported thereby (such notice, including any such notice given in connection with the extension of a Letter of Credit, a “Notice of Issuance”).  Upon receipt of a Notice of Issuance, the applicable Issuing Lender shall promptly notify the Agent, and the Agent shall promptly notify each Lender of the contents thereof and of the amount of such Lender’s participation in such Letter of Credit.

 

(ii)                    The obligation of an Issuing Lender to issue a Letter of Credit shall, in addition to the conditions precedent set forth in Section 3.03 be subject to the conditions precedent that any such Letter of Credit shall be in such form and contain such terms as shall be reasonably satisfactory to the applicable Issuing Lender and that the Company shall have executed and delivered such other customary instruments and agreements relating to such Letter of Credit as the applicable Issuing Lender shall have reasonably requested.  The Company shall also pay to the applicable Issuing Lender for its own account issuance, drawing, amendment, settlement and extension charges, if any, in the amounts and at the times as agreed between the Company and the applicable Issuing Lender.

 

(iii)                The extension or renewal of any Letter of Credit shall be deemed to be an issuance of such Letter of Credit, and if any Letter of Credit contains a provision pursuant to which it is deemed to be extended unless notice of termination is given by the applicable Issuing Lender, such Issuing Lender shall timely give such notice of termination unless it has theretofore timely received a Notice of Issuance and the other conditions to issuance of a Letter of Credit have also theretofore been met with respect to such extension.  Each Letter of Credit shall expire at or before the close of business on a date no later than the tenth day prior to the end of the Revolving Credit Period.

 

(c)                     Payments; Reimbursement Obligations.

 

(i)                        Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the applicable Issuing Lender shall notify the Agent and the Agent shall promptly notify the Company and each other Lender as to the amount to be paid as a result of such demand or drawing and the date such payment is to be made by the applicable Issuing Lender (the “Payment Date”).  The Company shall be irrevocably and unconditionally obligated to reimburse the applicable Issuing Lender for any amounts paid by such Issuing Lender upon any drawing under any Letter of Credit, without presentment, demand, protest or other formalities of any kind.  Such reimbursement shall be due on the Domestic Business Day following the date of receipt by the Company of notice of its obligation to make such payment if such notice is received by it prior to 10:00 a.m. (New York City time) on such date, or on the second Domestic Business Day following such date if such notice is received after 10:00 a.m. (New York City time) on such date; and provided that if and to the extent any such

 

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reimbursement is not made by the Company in accordance with this clause (i) or clause (ii) below on the Payment Date, then (irrespective of when notice thereof is received by the Company), such reimbursement obligation shall bear interest, payable on demand, for each day from and including the Payment Date to but not including the date such reimbursement obligation is paid in full at a rate per annum equal to the rate applicable to Base Rate Loans for such day.

 

(ii)                    If the Commitments remain in effect on the Payment Date, all such amounts paid by the applicable Issuing Lender and remaining unpaid by the Company after the date and time required by Section 2.18(c)(i) (a “Reimbursement Obligation”) shall, if and to the extent that the amount of such Reimbursement Obligation would be permitted as a Borrowing of a Loan pursuant to Section 3.03, and unless the Company otherwise instructs the Agent by not less than one Domestic Business Day’s prior notice, convert automatically to Base Rate Loans on the date such Reimbursement Obligation arises.  The Agent shall, on behalf of the Company (which hereby irrevocably directs the Agent so to act on its behalf), give notice no later than 10:30 a.m. (New York City time) on such date requesting each Lender to make, and each Lender hereby agrees to make, a Base Rate Loan, in an amount equal to such Lender’s Applicable Percentage of the Reimbursement Obligation with respect to which such notice relates.  Each Lender shall make such Loan available to the Agent at its address specified in or pursuant to Section 2.08(b)(i) in immediately available funds, not later than 12:00 Noon (New York City time), on the date specified in such notice.  The Agent shall pay the proceeds of such Loans to the applicable Issuing Lender, which shall immediately apply such proceeds to repay the Reimbursement Obligation.

 

(iii)                To the extent the Reimbursement Obligation is not refunded by a Lender pursuant to clause (ii) above, such Lender will pay to the Agent, for the account of the applicable Issuing Lender, immediately upon such Issuing Lender’s demand at any time during the period commencing after such Reimbursement Obligation arises until reimbursement therefor in full by the Company, an amount equal to such Lender’s Applicable Percentage of such Reimbursement Obligation, together with interest on such amount for each day from the date of the applicable Issuing Lender’s demand for such payment (or, if such demand is made after 1:00 p.m. (New York City time) on such date, from the next succeeding Domestic Business Day) to the date of payment by such Lender of such amount at a rate of interest per annum equal to the Federal Funds Rate for the first three Domestic Business Days after the date of such demand and thereafter at a rate per annum equal to the Base Rate for each additional day.  The applicable Issuing Lender will pay to each Lender ratably all amounts received from the Company for application in payment of its Reimbursement Obligations in respect of any Letter of Credit, but only to the extent such Lender has made payment to the applicable Issuing Lender in respect of such Letter of Credit pursuant hereto; provided that in the event such payment received by the applicable Issuing Lender is required to be returned, such Lender will return to such Issuing Lender any portion thereof previously distributed to it by such Issuing Lender.

 

(d)                    Obligations Absolute.  The obligations of the Company and each Lender under subsection (c) above shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, under all circumstances whatsoever, including without limitation the following circumstances:

 

(i)                        any lack of validity or enforceability of this Agreement or any Letter of Credit or any document related hereto or thereto;

 

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(ii)                    any amendment or waiver of or any consent to departure from all or any of the provisions of this Agreement or any Letter of Credit or any document related hereto or thereto, provided by any party affected thereby;

 

(iii)                the use which may be made of the Letter of Credit by, or any acts or omission of, a beneficiary of a Letter of Credit (or any Person for whom the beneficiary may be acting);

 

(iv)                the existence of any claim, set-off, defense or other rights that the Company may have at any time against a beneficiary of a Letter of Credit (or any Person for whom the beneficiary may be acting), any Lender (including any Issuing Lender) or any other Person, whether in connection with this Agreement or the Letter of Credit or any document related hereto or thereto or any unrelated transaction;

 

(v)                    any statement or any other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect whatsoever;

 

(vi)                payment under a Letter of Credit against presentation to the applicable Issuing Lender of documents that do not comply with the terms of such Letter of Credit;

 

(vii)            any termination of the Commitments prior to, on or after the Payment Date for any Letter of Credit, whether at the scheduled termination thereof, by operation of Section 6.01 or otherwise; or

 

(viii)        any other act or omission to act or delay of any kind by any Lender (including any Issuing Lender), the Agent or any other Person or any other event or circumstance whatsoever that might, but for the provisions of this subsection (viii), constitute a legal or equitable discharge of or defense to the Company’s or the Lender’s obligations hereunder;

 

provided, that this Section 2.18(d) shall not limit the rights of the Company under Section 2.18(e)(ii).

 

(e)                     Indemnification; Expenses.

 

(i)                        The Company hereby indemnifies and holds harmless each Lender (including each Issuing Lender) and the Agent from and against any and all claims, damages, losses, liabilities, costs or expenses which it may reasonably incur in connection with a Letter of Credit issued pursuant to this Section 2.18; provided that (x) the Company shall not be required to indemnify any Lender, or the Agent, for any claims, damages, losses, liabilities, costs or expenses, to the extent (i) found by a court of competent jurisdiction by final non-appealable judgment to have been caused by the gross negligence, bad faith or willful misconduct of such Person or any of its Related Parties or material breach by such Person or any of its Related Parties of an obligation under this Agreement or (ii) arising from any dispute solely among Persons indemnified pursuant to this Section 2.18(e)(i) other than any claims against the Agent in its capacity as such, and (y) the Company shall not be required to indemnify any Issuing Lender for any claims, damages, losses, liabilities, costs or expenses caused by any matter referred to in clause (x) or (y) of Section 2.18(e)(ii).  This Section 2.18(e) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim.

 

(ii)                    None of the Lenders (including an Issuing Lender) nor the Agent nor any of their officers or directors or employees or agents shall be liable or responsible, by reason of or in

 

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connection with the execution and delivery or transfer of or payment or failure to pay under any Letter of Credit, including without limitation any of the circumstances enumerated in subsection (d) above; provided that, notwithstanding Sections 2.18(c) and 2.18(d), the Company shall have a claim for direct and incidental (but not consequential) damage suffered by it, to the extent determined by a court of competent jurisdiction by final non-appealable judgment to have been caused by (x) subject to the following sentence, the applicable Issuing Lender’s failure to exercise reasonable care in determining whether documents presented under any Letter of Credit complied with the terms of such Letter of Credit or (y) the applicable Issuing Lender’s failure (i) to pay under any Letter of Credit after the presentation to it of documents strictly complying with the terms and conditions of the Letter of Credit or (ii) to otherwise perform its express obligations under any Letter of Credit.  The parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the applicable Issuing Lender may, in its discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

(iii)                Nothing in this subsection (e) is intended to limit the obligations of the Company under any other provision of this Agreement.  To the extent the Company does not indemnify an Issuing Lender as required by this subsection, the Lenders agree to do so ratably in accordance with their Commitments; provided that the Lenders shall not be required to indemnify any Issuing Lender for any claims, damages, losses, liabilities, costs or expenses, to the extent found by a court of competent jurisdiction by final non-appealable judgment to have been caused by the gross negligence, bad faith or willful misconduct of such Issuing Lender or any of its Related Parties or material breach by such Issuing Lender or any of its Related Parties of an obligation under this Agreement.

 

(f)                      Stop Issuance Notice.  If the Required Lenders reasonably determine at any time that the conditions set forth in Section 3.03 would not be satisfied in respect of a Borrowing at such time, then the Required Lenders may request that the Agent issue a “Stop Issuance Notice”, and the Agent shall promptly issue such notice to each Issuing Lender.  Such Stop Issuance Notice shall be withdrawn upon a determination by the Required Lenders that the circumstances giving rise thereto no longer exist.  No Letter of Credit shall be issued while a Stop Issuance Notice is in effect.  The Required Lenders may request issuance of a Stop Issuance Notice only if there is a reasonable basis therefor, and shall consider reasonably and in good faith a request from the Company for withdrawal of the same on the basis that the conditions in Section 3.03 are satisfied, provided that the Agent and the Issuing Lenders may and shall conclusively rely upon any Stop Issuance Notice while it remains in effect.

 

(g)                     Additional Issuing Lenders.  From time to time, the Company may, with notice to the Agent, designate as additional Issuing Lenders one or more Lenders that agree to serve in such capacity as provided below.  The acceptance by a Lender of any appointment as an Issuing Lender hereunder shall be evidenced by an instrument, which shall be in a form reasonably satisfactory to the Company, such Issuing Lender and the Agent, shall set forth the Letter of Credit Commitment of such Lender and shall be executed by such Lender, the Company and the Agent and, from and after the effective date of such agreement (i) such Lender shall have all the rights and obligations of an Issuing Lender under this Agreement and (ii) references herein to the term “Issuing Lender” shall be deemed to include such Lender in its capacity as an Issuing Lender.

 

Section 2.19.  Extension Option.  (a) The Termination Date may be extended in the manner set forth in this Section 2.19 for a period of one year from the Termination Date then in effect; provided that the Termination Date may only be extended for two additional one year periods.  If the Company wishes

 

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to request an extension of the Termination Date, the Company shall give written notice to that effect to the Agent not less than 45 days nor more than 90 days prior to the Termination Date then in effect, whereupon the Agent shall promptly notify each of the Lenders of such request.  Each Lender will use its best efforts to respond to such request, whether affirmatively or negatively, as it may elect in its sole and absolute discretion, within 30 days of such notice to the Agent.  If any Lender shall not have responded affirmatively within such 30-day period, such Lender shall be deemed to have rejected the Company’s proposal to extend its Commitment and only the Commitments of those Lenders which have responded affirmatively shall be extended, subject to receipt by the Agent of counterparts of an Extension Agreement in substantially the form of Exhibit I hereto (the “Extension Agreement”) duly completed and signed by the Company, the Agent and all of the Lenders which have responded affirmatively.  No extension of the Commitments pursuant to this Section 2.19 shall be legally binding on any party hereto unless and until such Extension Agreement is so executed and delivered by Lenders having at least 66 2/3% of the aggregate amount of the Commitments.

 

(b)                    If any Lender rejects, or is deemed to have rejected, the Company’s proposal to extend its Commitment, (i) this Agreement shall terminate on the Termination Date then in effect with respect to such Lender, (ii) the Company shall pay to such Lender on such Termination Date any amounts due and payable to such Lender on such date and (iii) the Company may, if it so elects, designate a Person not theretofore a Lender and acceptable to the Agent to become a Lender, or agree with an existing Lender that such Lender’s Commitment shall be increased, provided that any designation or agreement may not increase the aggregate amount of the Commitments.  Upon execution and delivery by the Company and such replacement Lender or other Person of an instrument of assumption in form reasonably satisfactory to the Agent and execution and delivery of the Extension Agreement pursuant to Section 2.19(a), such existing Lender shall have a Commitment as therein set forth or such other Person shall become a Lender with a Commitment as therein set forth and all the rights and obligations of a Lender with such a Commitment hereunder.  On the date of termination of any Lender’s Commitment as contemplated by this subsection (b), the respective participations of the other Lenders in all outstanding Letters of Credit shall be redetermined on the basis of their respective Commitments after giving effect to such termination, and the participation therein of the Lender whose Commitment is terminated shall terminate; provided that the Company shall, if and to the extent necessary to permit such redetermination of participations in Letters of Credit within the limits of the Commitments which are not terminated, prepay on such date a portion of the outstanding Loans, and such redetermination and termination of participations in outstanding Letters of Credit shall be conditioned upon its having done so.

 

(c)                     The Agent shall promptly notify the Lenders of the effectiveness of each extension of the Commitments pursuant to this Section 2.19.

 

Section 2.20.  Defaulting Lenders; Affected Lenders.

 

(a)                     If any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(i)                        fees shall cease to accrue on the unused portion of the Commitment of such Defaulting Lender pursuant to Section 2.09(a);

 

(ii)                    the Commitment and Loans of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification permitted to be effected by the Required Lenders pursuant to Section 9.05);

 

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(iii)       if any Letter of Credit Liabilities exist at the time such Lender becomes a Defaulting Lender then:

 

(A)        the Letter of Credit Liabilities of such Defaulting Lender shall be automatically reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent that, after giving effect thereto, the aggregate principal amount of Committed Loans by any non-Defaulting Lender outstanding at such time plus the aggregate amount of such non-Defaulting Lender’s Letter of Credit Liabilities at such time shall not exceed the amount of its Commitment;

 

(B)        if the reallocation described in clause (A) above cannot, or can only partially, be effected, the Company shall within three Domestic Business Days following notice by the Agent either (x) procure the reduction or termination of the Defaulting Lender’s Letter of Credit Liabilities (after giving effect to any partial reallocation pursuant to clause (A) above) or (y) cash collateralize for the benefit of the applicable Issuing Lenders only the Company’s obligations corresponding to such Defaulting Lender’s Letter of Credit Liabilities (after giving effect to any partial reallocation pursuant to clause (A) above) in accordance with the procedures set forth in Section 6.03 for so long as such Letter of Credit Liabilities are outstanding;

 

(C)        if the Company cash collateralizes any portion of such Defaulting Lender’s Letter of Credit Liabilities pursuant to clause (B) above, the Company shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.09(b) with respect to such Defaulting Lender’s Letter of Credit Liabilities during the period such Defaulting Lender’s Letter of Credit Liabilities are cash collateralized;

 

(D)        to the extent that the Letter of Credit Liabilities of the non-Defaulting Lenders are reallocated pursuant to clause (A) above, then the letter of credit fees payable to the Lenders pursuant to Section 2.09(b) shall to the same extent be adjusted in accordance with the reallocation of such non-Defaulting Lenders’ Applicable Percentages; and

 

(E)         if all or any portion of such Defaulting Lender’s Letter of Credit Liabilities is not reallocated, reduced, terminated nor cash collateralized pursuant to clause (A) or (B) above, then, without prejudice to any rights or remedies of the Issuing Lenders or any other Person hereunder, all letter of credit fees payable under Section 2.09(b) with respect to such Defaulting Lender’s Letter of Credit Liabilities shall be payable to the applicable Issuing Lenders until and to the extent that such Letter of Credit Liabilities are reallocated, reduced, terminated and/or cash collateralized; and

 

(iv)       so long as such Lender is a Defaulting Lender, no Issuing Lender shall be required to issue, extend, renew or increase any Letter of Credit, unless the Defaulting Lender’s then outstanding Letter of Credit Liabilities after giving effect thereto will be 100% covered by the Commitments of the non-Defaulting Lenders and/or prepaid, reduced, terminated and/or cash collateralized in accordance with Section 2.20(a)(iii), and participating interests in any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.20(a)(iii)(A) (and such Defaulting Lender shall not participate therein).

 

If any Issuing Lender has a good faith belief that any Lender has defaulted in fulfilling its funding obligations under one or more other agreements in which such Lender commits to extend credit, the applicable Issuing Lender shall not be required to issue, extend, renew or increase any Letter of Credit, 

 

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unless such Issuing Lender shall have entered into arrangements with the Company or such Lender, reasonably satisfactory to such Issuing Lender to defease any risk to such Issuing Lender in respect of such Lender hereunder relating to Letter of Credit Liabilities.

 

In the event that the Agent, the Company and the Issuing Lenders each agree that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Letter of Credit Liabilities of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders and such of the Letter of Credit Liabilities and unreimbursed Letter of Credit Disbursements as the Agent shall determine is necessary in order for such Lender to hold such Loans and Letter of Credit Liabilities in accordance with its Applicable Percentage; provided that there shall be no retroactive effect on fees reallocated pursuant to Section 2.20(a)(iii)(D) and (E).

 

(b)     Notwithstanding any contrary provision in this Agreement, the Company may (i) (A) prepay, without penalty or premium (but subject to Section 2.14), the Loans made by an Affected Lender and (B) terminate the Commitment of an Affected Lender, in each case, (x) without pro rata prepayment of Loans of other Lenders or pro rata termination of Commitments of other Lenders and (y) upon not less than two Business Days’ prior notice to the Agent (which will promptly notify the Lenders thereof) or (ii) replace the Affected Lender in accordance with Section 8.06(b), it being understood that such prepayment and termination, or such replacement, will not be deemed to be a waiver or release of any claim the Company or the Agent may have against such Affected Lender.

 

(c)     Simultaneously with the termination of the Commitment of an Affected Lender pursuant to clause (b) of this Section 2.20:

 

(i)         the Letter of Credit Liabilities of such Affected Lender shall be automatically reallocated among the other Lenders (other than Defaulting Lenders) in accordance with their respective Applicable Percentages but only to the extent that, after giving effect thereto, the aggregate principal amount of Committed Loans by any non-Affected Lender outstanding at such time plus the aggregate amount of such non-Affected Lender’s Letter of Credit Liabilities at such time shall not exceed the amount of its Commitment; and

 

(ii)        if the reallocation described in clause (i) cannot be effected, such Commitment termination shall not be effective unless the Company, at its option, shall have cash collateralized the amount of the Letter of Credit Liabilities of such Affected Lender that has not been reallocated to the other Lenders pursuant to clause (i).

 

(iii)       Upon (and subject to) such reallocation and cash collateralization, the participating interest of the Affected Lender in any outstanding Letters of Credit shall terminate.

 

(d)     Nothing in this Section 2.20 shall affect any rights or remedies the Company may have against any Defaulting Lender.

 

ARTICLE 3
 CONDITIONS

 

Section 3.01.  [Reserved].

 

Section 3.02.  Conditions Precedent to Closing Date.  The Closing Date shall occur on the date that each of the following conditions shall have been satisfied (or waived in accordance with Section 9.05):

 

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(a)     receipt by the Agent of counterparts hereof signed by each of the parties hereto (or, in the case of any party as to which an executed counterpart shall not have been received, receipt by the Agent in form satisfactory to it of telegraphic, telex or other written confirmation from such party of execution of a counterpart hereof by such party);

 

(b)     receipt by the Agent of a certificate, dated the Closing Date and signed by a duly authorized officer of the Company, certifying that (i) immediately before and after the Closing Date, no Default shall have occurred and be continuing and (ii) the representations and warranties of the Company contained in this Agreement shall be true on and as of the Closing Date;

 

(c)     receipt by the Agent of all documents the Agent may reasonably request relating to the existence and good standing of the Company, the corporate authority for and the validity of this Agreement and the Notes, and any other matters relevant hereto, all in form and substance satisfactory to the Agent;

 

(d)     receipt by the Agent of all documentation and other information required by regulatory authorities under “know your customer” and anti-money laundering rules and regulations, including without limitation, the Patriot Act;

 

(e)     receipt by the Agent and the Arrangers of all fees, reasonable out-of-pocket expenses and other compensation due and payable under this Agreement, the Commitment Letter or the Fee Letters, including to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Company hereunder or thereunder; and

 

(f)      receipt by the Agent of (i) an opinion of the General Counsel of the Company, covering such matters as the Agent may reasonably request and (ii) an opinion of Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Company, covering such matters as the Agent may reasonably request.

 

The Agent shall promptly notify the Company, the Lenders and the Issuing Lenders of the Closing Date, and such notice shall be conclusive and binding on all parties hereto.

 

Section 3.03.  Borrowings and Issuances of Letters of Credit.  The obligation of any Lender to make a Loan on the occasion of any Borrowing and the obligation of an Issuing Lender to issue (or renew or extend the term of) any Letter of Credit is subject to the satisfaction of the following conditions:

 

(a)     the Closing Date shall have occurred;

 

(b)     receipt by the Agent of (i) a Notice of Borrowing as required by Section 2.02 or 2.03, as the case may be or (ii) a Notice of Issuance as required by Section 2.18(b);

 

(c)     the fact that, immediately after such Borrowing or issuance (or renewal or extension), the Total Outstanding Amount will not exceed the aggregate amount of the Commitments and the aggregate amount of the Letter of Credit Liabilities shall not exceed $300,000,000;

 

(d)     the fact that, immediately before and after such Borrowing or issuance, no Default shall have occurred and be continuing; and

 

(e)     the fact that the representations and warranties of the Company contained in this Agreement (other than the representations and warranties set forth in Sections 4.04, 4.05 and 4.06, which are made only as of the Closing Date) shall be true on and as of the date of such Borrowing or issuance.

 

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Each Borrowing or issuance of any Letter of Credit hereunder shall be deemed to be a representation and warranty by the Company on the date of such Borrowing or issuance as to the facts specified in clauses (d) and (e) of this Section 3.03.

 

Section 3.04. Existing Credit Agreements.

 

(a)     The Company and each of the Lenders that is also a party to the Existing 5-Year Credit Agreement (such Lenders comprising the “Required Banks” as defined in the Existing 5-Year Credit Agreement) agree as follows:

 

(i)         The “Commitments” (as defined in the Existing 5-Year Credit Agreement) shall terminate in their entirety on the Closing Date, unless such Commitments have earlier terminated in accordance with the terms of the Existing 5-Year Credit Agreement;

 

(ii)        Any requirement of notice of such termination of Commitments and prepayment of loans pursuant to Sections 2.10 and 2.12 of the Existing 5-Year Credit Agreement is hereby waived; and

 

(iii)       After the Closing Date, the Company shall have no further obligations under the Existing 5-Year Credit Agreement, except for (i) payment obligations accrued as of the Closing Date and not discharged on such date and (ii) contingent payment obligations thereafter arising under Sections 8.03, 8.04 and 9.03 thereof.

 

(b)     The Company and each of the Lenders that is also a party to the Existing 364-Day Credit Agreement (such Lenders comprising the “Required Banks” as defined in the Existing 364-Day Credit Agreement) agree as follows:

 

(i)         The “Commitments” (as defined in the Existing 364-Day Credit Agreement) shall terminate in their entirety on the Closing Date, unless such Commitments have earlier terminated in accordance with the terms of the Existing 364-Day Credit Agreement;

 

(ii)        Any requirement of notice of such termination of Commitments and prepayment of loans pursuant to Sections 2.10 and 2.12 of the Existing 364-Day Credit Agreement is hereby waived; and

 

(iii)       After the Closing Date, the Company shall have no further obligations under the Existing 364-Day Credit Agreement, except for (i) payment obligations accrued as of the Closing Date and not discharged on such date and (ii) contingent payment obligations thereafter arising under Sections 8.03, 8.04 and 9.03 thereof.

 

ARTICLE 4
 REPRESENTATIONS AND WARRANTIES

 

The Company represents and warrants that:

 

Section 4.01.  Corporate Existence and Power.  The Company (i) is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware, and (ii) has all corporate powers and will have on and as of the Closing Date all governmental licenses, authorizations, consents and approvals required to carry on its business, except to the extent the failure to have any such licenses, authorizations, consents or approvals does not have, and would not reasonably be expected to have, a 

 

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material adverse effect on the business or consolidated financial position of the Company and its Consolidated Subsidiaries, considered as a whole.

 

Section 4.02.  Corporate and Governmental Authorization; No Contravention.  The execution, delivery and performance by the Company of this Agreement and the Notes (i) are within the Company’s corporate powers, (ii) have been duly authorized by all necessary corporate action, (iii) require no action by or in respect of, or filing with, any Governmental Authority, (iv) do not contravene any provision (x) of applicable law or regulation or (y) of the certificate of incorporation or by-laws of the Company and (v) do not contravene, or constitute a default under, any debt instrument known to the Company to be binding upon it, except with respect to clauses (iii), (iv)(x) and (v), to the extent such failure does not have, and would not reasonably be expected to have, a material adverse effect on the business or consolidated financial position of the Company and its Consolidated Subsidiaries, considered as a whole.

 

Section 4.03.  Binding Effect.  This Agreement constitutes a valid and binding agreement of the Company and each Note, when executed and delivered in accordance with this Agreement, will constitute a valid and binding obligation of the Company, in each case enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium, reorganization and other similar laws of general application affecting creditors’ rights and general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

Section 4.04.  Financial Information.  (a) The Company has furnished to the Agent the consolidated balance sheet and the related consolidated statement of income, stockholder’s equity and cash flows of the Company as of September 30, 2016, September 30, 2015 and September 30, 2014 for the fiscal years then ended, in each case reported on by independent public accountants.  Such financial statements of the Company referred to in subsection (a) of this Section 4.04 fairly present, in all material respects, in conformity with GAAP, the financial position of the Company as of such dates and its results of operations and cash flows for such fiscal years.

 

(b)     The Company has furnished to the Agent the unaudited consolidated balance sheet and the related unaudited consolidated statements of income and cash flows of the Company for each fiscal quarter subsequent to September 30, 2016 and ended at least 45 days prior to the Closing Date, as applicable. Such financial statements of the Company fairly present, in all material respects, in conformity with GAAP applied on a basis consistent with the financial statements referred to in subsection (a) of this Section 4.04, the financial position of the Company as of such dates and their results of operations and cash flows for such three month period (subject to the absence of footnotes and normal year-end adjustments).

 

(c)     There has been no material adverse change in the financial condition, business or operations of the Company since September 30, 2016, unless and to the extent disclosed in the Company’s quarterly reports on Form 10-Q, as filed with the Commission.

 

Section 4.05.  Litigation.  Except as disclosed in the Company’s annual report for 2016 on Form 10-K and any subsequent quarterly report on Form 10-Q filed by the Company with the Commission prior to the Closing Date, there is no action, suit or proceeding pending against, or to the knowledge of the Company any pending investigation or threatened suit, proceeding or investigation against or affecting, the Company or any of its Subsidiaries before any court or arbitrator or any Governmental Authority, in which there is a reasonable probability of an adverse decision which would reasonably be expected to materially adversely affect the business or consolidated financial position of the Company and its Consolidated Subsidiaries, considered as a whole, or which in any manner draws into question the validity of this Agreement or the Notes.

 

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Section 4.06.  Environmental Matters.  Expenditures by the Company and its Consolidated Subsidiaries for environmental capital investment and remediation necessary to comply with present Environmental Laws and other expenditures for the resolution of existing environmental claims known to the Company are not expected by management of the Company to have a material adverse effect on the financial condition, business or operations of the Company and its Consolidated Subsidiaries, taken as a whole.

 

Section 4.07.  Investment Company Act.  The Company is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section 4.08.  Compliance with Certain Laws.  The Company and its Subsidiaries are in compliance, in all material respects, with (a) sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control, the U.S. State Department, the United Nations Security Council, the European Union and Her Majesty’s Treasury (collectively, “Sanctions”), (b) all applicable anti-money laundering and counter-terrorist financing laws and regulations, including applicable provisions of the Bank Secrecy Act, as amended by Title III of the Patriot Act and (c) the United States Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”) and all other applicable anti-corruption laws.  None of the Company or any of its Subsidiaries nor any director or officer thereof, nor, to the knowledge of the Company, any employee, agent, or affiliate of the Company or its Subsidiaries (i) is, or is controlled or 50% or more owned by one or more Persons that are, listed on any Sanctions-related list of designated Persons or (ii) has a place of business, is organized or resides in a country, region or territory that is the subject of comprehensive Sanctions (currently Crimea, Cuba, Iran, North Korea, Sudan, and Syria) (a “Sanctioned Country”), in the case of clause (ii), except to the extent licensed or otherwise authorized under U.S. law (such Persons described in clauses (i) and (ii) hereof, “Sanctioned Persons”).  The Company and its Subsidiaries have instituted and maintain policies and procedures reasonably designed to ensure compliance with Sanctions and applicable anti-corruption laws.

 

ARTICLE 5
 COVENANTS

 

The Company agrees that, so long as any Lender has any Commitment hereunder or any Loan or Letter of Credit remains outstanding or any amount payable hereunder remains unpaid:

 

Section 5.01.  Information.  The Company will deliver to each of the Lenders:

 

(a)     within 120 days after the end of each fiscal year of the Company, the Company’s Annual Report to Shareowners and annual report on Form 10-K for such fiscal year, as filed with the Commission;

 

(b)     within 60 days after the end of each of the first three quarters of each fiscal year of the Company, the Company’s quarterly report on Form 10-Q for such fiscal quarter, as filed with the Commission;

 

(c)     simultaneously with the delivery of each set of financial statements referred to in clause (a) or (b), a certificate of the chief financial officer, the treasurer or the controller of the Company (i) stating whether any Default exists on the date of such financial statements and (ii) setting forth a calculation of compliance with the covenant contained in Section 5.05;

 

(d)     within 10 days after the chief financial officer, the treasurer or the controller of the Company obtains knowledge of any Default, if such Default is then continuing, a certificate of the chief financial officer, the treasurer or the controller of the Company setting forth the details thereof;

 

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(e)     promptly upon the filing thereof, copies of all reports on Form 8-K (or its equivalent) which the Company shall have filed with the Commission; and

 

(f)      from time to time such additional information regarding the financial position or business of the Company and its Subsidiaries as the Agent, at the request of any Lender, may reasonably request.

 

Any of the delivery requirements relating to financial information or other reports set forth in this Section 5.01 may be satisfied, and no additional delivery shall be required hereunder with respect thereto, to the extent that such information or report is publicly available via the Commission’s EDGAR system or another publicly available reporting system or website accessible by the Agent and the Lenders and the Company has advised the Agent of the filing or posting thereof.

 

Section 5.02.  Maintenance of Existence.  The Company will preserve, renew and keep in full force and effect its corporate existence and its rights, privileges and franchises necessary or desirable in the normal conduct of business, except, with respect to such rights, privileges and franchises, to the extent any failure to do so would not reasonably be expected to result in a material adverse effect on the business or consolidated financial position of the Company and its Consolidated Subsidiaries, considered as a whole; provided that nothing in this Section 5.02 shall prohibit a merger or consolidation permitted by Section 5.06.

 

Section 5.03.  Compliance with Laws.  The Company will comply in all material respects with all applicable laws, ordinances, rules, regulations, and requirements of governmental authorities (including, without limitation, environmental laws and ERISA and the rules and regulations thereunder) except where (a) the necessity of compliance therewith is contested in good faith by appropriate proceedings or (b) non-compliance would not, in the reasonable judgment of the Company, have a material adverse effect on the financial condition, business or operations of the Company and its Consolidated Subsidiaries, considered as a whole.

 

Section 5.04.  Use of Proceeds.  (a) Letters of Credit issued under this Agreement and the proceeds of the Loans made under this Agreement will be used by the Company for its general corporate purposes.  None of such proceeds will be used in violation of Regulation T, U or X.

 

(b)     None of the Company or any of its Subsidiaries will directly or (to the Company’s knowledge) indirectly use the proceeds of the Loans or otherwise make available such proceeds to any Person, for the purpose of financing activities or businesses of or with any Person, that is, at the time of such financing, a Sanctioned Person, or in any country, region or territory that is, at the time of such financing, a Sanctioned Country, in each case except to the extent permissible for a Person required to comply with Sanctions.  No part of the proceeds of the Loans shall be used by the Company, directly or (to the Company’s knowledge) indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the FCPA or any other applicable anti-corruption laws.

 

Section 5.05.  Debt to Capitalization.  The Debt to Total Capitalization Ratio will at no time exceed (i) at any time prior to the Stepdown Date (as defined below), 68% and (ii) at any time on or after the Stepdown Date, 65%.  As used above, the “Stepdown Date” means the earlier of (x) the date that is 45 days following the day (if any) upon which the Acquisition Agreement is terminated in accordance with the terms thereof and (y) the last day of the fourth full fiscal quarter following the closing of the Acquisition (if any).

 

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Section 5.06.  Mergers, Consolidations and Sales of Assets.  (a) The Company shall not consolidate with or merge into any other corporation or convey or transfer its properties and assets substantially as an entirety to any Person, unless

 

(i)         the corporation formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer the properties and assets of the Company substantially as an entirety shall be a corporation organized and existing under the laws of the United States or any State or the District of Columbia, and shall expressly assume, in form satisfactory to the Agent, the due and punctual payment of the principal of and interest, if any, on all the Loans and the performance of every covenant of this Agreement on the part of the Company to be performed or observed;

 

(ii)        immediately after giving effect to such transaction, no Default shall have occurred and be continuing; and

 

(iii)       the Company shall have delivered to the Agent a certificate of a duly authorized officer of the Company and an opinion of legal counsel to the Company (which shall be reasonably acceptable to the Agent), each stating that such consolidation, merger, conveyance or transfer complies with this Section 5.06(a) and that all conditions precedent herein provided for relating to such transaction have been complied with.

 

(b)     Upon any consolidation or merger, or any conveyance or transfer of the properties and assets of the Company substantially as an entirety in accordance with Section 5.06(a), the successor corporation formed by such consolidation or into which the Company is merged or to which such conveyance or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Agreement with the same effect as if such successor corporation had been named as the Company herein, and thereafter the predecessor corporation shall be relieved of all obligations and covenants under this Agreement and the Notes and may be liquidated and dissolved.

 

(c)     If, upon any consolidation or merger of the Company with or into any corporation, or upon the conveyance or transfer by the Company of its properties and assets substantially as an entirety in accordance with Section 5.06(a) to any Person, any Principal Property owned by the Company or a Restricted Subsidiary immediately prior thereto would thereupon become subject to any Lien not permitted by Section 5.07, the Company will, prior to such consolidation, merger, conveyance or transfer, secure the obligations of the Company hereunder (equally and ratably with any other Debt of the Company then entitled to be so secured) by a direct Lien on such Principal Property, together with any other properties and assets of the Company or of any such Restricted Subsidiary, whichever shall be the owner of any such Principal Property, which would thereupon become subject to any such Lien, prior to all Liens other than any theretofore existing thereon.

 

Section 5.07.  Limitations on Liens.  The Company shall not at any time create, incur, assume or suffer to exist, and shall not cause, suffer or permit a Restricted Subsidiary to create, incur, assume or suffer to exist, any Secured Debt without making effective provision (and the Company covenants that in such case it will make or cause to be made effective provision) whereby the obligations of the Company hereunder shall be secured equally and ratably with such Secured Debt, so long as such Secured Debt shall exist; provided, however, that this Section 5.07 shall not prevent any of the following:

 

(a)     (i) any Lien on any property hereafter acquired (including acquisition through merger or consolidation) or constructed by the Company or a Restricted Subsidiary and created contemporaneously with, or within twelve months after, such acquisition or the completion of construction to secure or provide for the payment of all or any part of the purchase price of such property or the cost of 

 

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construction thereof, as the case may be; (ii) any mortgage on property (including any unimproved portion of partially improved property) of the Company or a Restricted Subsidiary created within twelve months of completion of construction of a new plant or plants on such property to secure all or part of the cost of such construction; or (iii) the acquisition of property subject to any Lien upon such property existing at the time of acquisition thereof, whether or not assumed by the Company or such Restricted Subsidiary;

 

(b)     Liens on capital stock hereafter acquired by the Company or any Restricted Subsidiary existing at the time of the acquisition thereof; provided that the aggregate cost to the Company and its Restricted Subsidiaries of all capital stock subject to such Liens does not exceed 10% of Shareowners’ Equity;

 

(c)     any Lien securing Debt of a corporation which is a successor to the Company to the extent permitted by Section 5.06; or securing Debt of a Restricted Subsidiary outstanding at the time it became a Restricted Subsidiary; or securing Debt of any Person outstanding at the time it is merged with, or all or substantially all of its properties are acquired by, the Company or any Restricted Subsidiary; provided that such Lien does not extend to any other properties of the Company or any Restricted Subsidiary; or existing on the property or on the outstanding shares or Debt of a corporation at the time it becomes a Restricted Subsidiary; or created, incurred or assumed in connection with any industrial revenue bond, pollution control bond or similar financing arrangement between the Company or any Restricted Subsidiary and any Federal, State or municipal government or other governmental body or agency;

 

(d)     any Lien created in connection with any extension, renewal or refunding (or successive extensions, renewals or refundings), in whole or in part, of any Debt secured by a Lien permitted by the foregoing provisions of this Section 5.07 upon the same property theretofore subject thereto (plus improvements on such property); provided that the amount of such Debt outstanding at that time shall not be increased;

 

(e)     Liens or deposits made in connection with contracts (which term includes subcontracts under such contracts) with or made at the request of the United States or any department or agency thereof, insofar as such Liens or deposits relate to property manufactured, installed or constructed by or to be supplied by, or property furnished to, the Company or a Restricted Subsidiary pursuant to, or to enable the performance of, such contracts, or property the manufacture, installation, construction or acquisition of which is financed pursuant to, or to enable the performance of, such contracts; or deposits or Liens, made pursuant to such contracts, of or upon moneys advanced or paid pursuant to, or in accordance with the provisions of, such contracts, or of or upon any materials or supplies acquired for the purpose of the performance of such contracts; or the assignment or pledge, to the extent permitted by law, of the right, title and interest of the Company or a Restricted Subsidiary in and to any such contract, or in and to any payments due or to become due thereunder, to secure Debt incurred for funds or other property supplied, constructed or installed for or in connection with the performance by the Company or such Restricted Subsidiary of its obligations under such contracts;

 

(f)      mechanics’, materialmen’s, carriers’ or other like Liens, and pledges or deposits made in the ordinary course of business to obtain the release of any such Liens or the release of property in the possession of a common carrier; good faith deposits in connection with tenders, leases of real estate or bids or contracts (other than contracts involving the borrowing of money); pledges or deposits to secure public or statutory obligations; deposits to secure (or in lieu of) surety, stay, appeal or customs bonds; and deposits to secure the payment of taxes, assessments, customs duties or other similar charges;

 

(g)     any Lien arising by reason of deposits with, or the giving of any form of security to, any governmental agency or any body created or approved by law or governmental regulation, which is 

 

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required by law or governmental regulation as a condition to the transaction of any business, or the exercise of any privilege or license, or to enable the Company or a Restricted Subsidiary to maintain self-insurance or to participate in any arrangements established by law to cover any insurance risks or in connection with workmen’s compensation, unemployment insurance, old age pensions, social security or similar matters;

 

(h)     any Liens for taxes, assessments or other governmental charges or levies not at the time due, or the validity of which is being contested in good faith;

 

(i)      judgment Liens, so long as the finality of such judgment is being contested in good faith and execution thereon is stayed;

 

(j)      easements or similar encumbrances, the existence of which does not impair the use of the property subject thereto for the purposes for which it is held or was acquired;

 

(k)     the landlord’s interest under any lease of property;

 

(l)      leases granted to others in the ordinary course of business;

 

(m)    Sale and Lease-Back Transactions to the extent permitted by Section 5.08; and

 

(n)     contracts for the manufacture, construction, installation or supply of property, products or services providing for a Lien upon advance, progress or partial payments made pursuant to such contracts and upon any material or supplies acquired, manufactured, constructed, installed or supplied in connection with the performance of such contracts to secure such advance, progress or partial payments.

 

Notwithstanding the foregoing provisions of this Section 5.07, the Company and any one or more Restricted Subsidiaries may create, incur, assume or suffer to exist Secured Debt which would otherwise be subject to the foregoing restrictions in an aggregate amount which, together with all other Secured Debt of the Company and its Restricted Subsidiaries which would otherwise be subject to the foregoing restrictions (not including Secured Debt permitted under clauses (a) through (n) above) and the aggregate value of the Sale and Lease-Back Transactions (as defined in Section 5.08) in existence at such time (not including Sale and Lease-Back Transactions the proceeds of which have been or will be applied in accordance with clause (ii) of Section 5.08), does not at the time exceed 10% of Shareowners’ Equity.

 

Section 5.08.  Limitations on Sale and Lease-Back.  The Company will not, and will not permit any Restricted Subsidiary to, sell or transfer (except to the Company or one or more Restricted Subsidiaries, or both) any Principal Property owned by it and which has been in full operation for more than 180 days prior to such sale or transfer with the intention (a) of taking back a lease on such property, except a lease for a temporary period (not exceeding 36 months) and (b) that the use by the Company or such Restricted Subsidiary of such property will be discontinued on or before the expiration of the term of such lease (any such transaction being herein referred to as a “Sale and Lease-Back Transaction”), unless:

 

(i)      the Company or such Restricted Subsidiary would be entitled, pursuant to the provisions of Section 5.07 hereof, to incur Secured Debt equal in amount to the amount realized or to be realized upon such sale or transfer secured by a mortgage on the property to be leased without equally and ratably securing the Loans; or

 

(ii)     the Company or a Restricted Subsidiary shall, within 180 days of the effective date of any such transaction, apply an amount equal to the value of the property so leased (x) to the retirement (other 

 

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than any mandatory retirement) of Consolidated Funded Debt or Debt then outstanding of the Company or any Restricted Subsidiary that was Funded Debt at the time it was created (other than Consolidated Funded Debt or such other Debt owned by the Company or any Restricted Subsidiary) or (y) to the purchase of Principal Property having a value at least equal to the value of such property; provided, however, that the amount to be so applied pursuant to the preceding clause (x) or (y) shall be reduced by (A) the principal amount of any Loans repaid within 180 days of the effective date of any such transaction and (B) the principal amount of Consolidated Funded Debt or Debt that was Funded Debt at the time it was created (other than Loans) retired by the Company or a Restricted Subsidiary within 180 days of the effective date of any such transaction; or

 

(iii)    the Sale and Lease-Back Transaction involved was an industrial revenue bond, pollution control bond or similar financing arrangement between the Company or any Restricted Subsidiary and any Federal, State or municipal government or other governmental body or agency.

 

The term “value” shall mean, with respect to a Sale and Lease-Back Transaction, as of any particular time, the amount equal to the greater of  (x) the net proceeds of the sale of the property leased pursuant to such Sale and Lease-Back Transaction or (y) the fair value of such property at the time of entering into such Sale and Lease-Back Transaction, as determined by the board of directors of the Company (or a duly authorized committee thereof), in either case divided first by the number of full years of the term of the lease and then multiplied by the number of full years of such term remaining at the time of determination, without regard to any renewal or extension options contained in the lease.

 

Section 5.09.  Limitations on Change in Subsidiary Status.  The Company may designate any Subsidiary as an Unrestricted Subsidiary or as a Restricted Subsidiary, subject to the provisions set forth below:

 

(a)     the Company will not permit any Subsidiary to be designated as an Unrestricted Subsidiary unless at the time of such designation the Subsidiary so designated does not own, directly or indirectly, any capital stock of any Restricted Subsidiary or any Funded Debt or Secured Debt of the Company or any Restricted Subsidiary;

 

(b)     the Company will not permit any Restricted Subsidiary to be designated as, or otherwise to become, an Unrestricted Subsidiary unless immediately after such Restricted Subsidiary becomes an Unrestricted Subsidiary, no Default shall exist;

 

(c)     the Company will not permit any Unrestricted Subsidiary to be designated as a Restricted Subsidiary unless immediately after such Unrestricted Subsidiary becomes a Restricted Subsidiary, no Default shall exist; and

 

(d)     promptly after the designation of any Subsidiary as an Unrestricted Subsidiary or as a Restricted Subsidiary, there shall be filed with the Agent, a certificate of a duly authorized officer of the Company stating that the provisions of this Section 5.09 have been complied with in connection with such designation.

 

ARTICLE 6
 DEFAULTS

 

Section 6.01.  Events of Default.  If one or more of the following events (“Events of Default”) shall have occurred and be continuing:

 

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(a)     the Company shall fail to pay when due any principal of any Loan or Reimbursement Obligation, or shall fail to pay within 10 days of the due date thereof any interest on any Loan, any fees or any other amount payable hereunder;

 

(b)     the Company shall fail to observe or perform any covenant or agreement contained in Article 5 for 90 days after notice thereof has been given to the Company by the Agent at the request of any Lender;

 

(c)     any representation or warranty made by the Company (i) in Article 4 or (ii) pursuant to Section 3.03 on the date of any Borrowing shall prove to have been incorrect in any material respect when made (or deemed made);

 

(d)     the Company or any of its Subsidiaries shall fail to pay the principal of or interest on Material Debt when due, or within any applicable grace period, in accordance with the instrument or agreement under which the same was created;

 

(e)     any event or condition shall occur (including failure to pay principal or interest) which results in the acceleration of the maturity of Material Debt, other than (i) Debt that becomes due as a result of the voluntary transfer of assets securing such Debt and (ii) prepayments of Debt which are mandatory under the terms of the documentation governing such Debt by reason of the receipt of net cash proceeds of other Debt, of dispositions (including, without limitation, as the result of casualty events and governmental takings) or of equity issuances or by reason of excess cash flow;

 

(f)      the entry of a decree or order for relief by a court having jurisdiction in the premises in respect of the Company in an involuntary case under the Federal bankruptcy laws, as now constituted or hereafter amended, or any other applicable Federal or State bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 90 consecutive days; or

 

(g)     the commencement by the Company of a voluntary case under the Federal bankruptcy laws, as now constituted or hereafter amended, or any other applicable Federal or State bankruptcy, insolvency or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in furtherance of any such action;

 

then, and in every such event, the Agent shall (i) if requested by Lenders having more than 50% in aggregate amount of the Commitments, by notice to the Company terminate the Commitments and they shall thereupon terminate, and (ii) if requested by Lenders holding more than 50% in aggregate principal amount of the Loans, by notice to the Company declare the Loans (together with accrued interest thereon) to be, and the Loans shall thereupon become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company; provided that in the case of any of the Events of Default specified in clause (f) or (g) above, without any notice to the Company or any other act by the Agent or the Lenders, the Commitments shall thereupon terminate and the Loans (together with accrued interest thereon) shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company.

 

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Section 6.02.  Notice of Default.  The Agent shall give notice to the Company under Section 6.01(b) promptly upon being requested to do so by any Lender and shall thereupon notify all the Lenders thereof.

 

Section 6.03.  Cash Cover.  The Company agrees, in addition to the provisions of Section 6.01 hereof, that upon the occurrence and during the continuance of any Event of Default, it shall, if requested by the Agent upon the instruction of the Lenders having more than 50% of the Letter of Credit Liabilities, pay to the Agent an amount in immediately available funds (which funds shall be held as collateral pursuant to arrangements satisfactory to the Agent) equal to the aggregate amount available for drawing under all Letters of Credit outstanding at such time, provided that, upon the occurrence of any Event of  Default specified in Section 6.01(f) or 6.01(g) with respect to the Company, the Company shall pay such amount forthwith without any notice or demand or any other act by the Agent or the Lenders.

 

ARTICLE 7
 THE AGENT

 

Section 7.01.  Appointment and Authorization.  Each Lender irrevocably appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the Notes as are delegated to the Agent by the terms hereof or thereof, together with all such powers as are reasonably incidental thereto.  Anything herein to the contrary notwithstanding, none of the Arrangers, Syndication Agents or Documentation Agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Agent, a Lender or an Issuing Lender hereunder.

 

Section 7.02.  Agent and Affiliates.  JPMorgan Chase Bank, N.A., in its capacity as a Lender, shall have the same rights and powers under this Agreement as any other Lender and may exercise or refrain from exercising the same as though it were not the Agent, and JPMorgan Chase Bank, N.A. and its affiliates may accept deposits from, lend money to, and generally engage in any kind of business with the Company or any Subsidiary or affiliate of the Company as if it were not the Agent hereunder.

 

Section 7.03.  Action by Agent.  The obligations of the Agent hereunder are only those expressly set forth herein.  Without limiting the generality of the foregoing, the Agent shall not be required to take any action with respect to any Default, except as expressly provided in Article 6.

 

Section 7.04.  Consultation with Experts.  The Agent may consult with legal counsel (who may be counsel for the Company), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts.

 

Section 7.05.  Liability of Agent.   Neither the Agent nor any of its affiliates nor any of their respective directors, officers, agents or employees shall be liable for any action taken or not taken by it in connection herewith (a) with the consent or at the request of the Required Lenders or, when expressly required hereby, all the Lenders or (b) in the absence of its own gross negligence or willful misconduct.  Neither the Agent nor any of its affiliates nor any of their respective directors, officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into or verify (i) any statement, warranty or representation made in connection with this Agreement or any borrowing or issuance of a Letter of Credit hereunder; (ii) the performance or observance of any of the covenants or agreements of the Company; (iii) the satisfaction of any condition specified in Article 3, except receipt of items required to be delivered to the Agent; or (iv) the validity, effectiveness or genuineness of this Agreement, the Notes or any other instrument or writing furnished in connection herewith.  The Agent shall not incur any liability by acting in reliance upon any notice, consent, certificate, statement, or other writing (which may 

 

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be a bank wire, telex, facsimile transmission or similar writing) believed by it to be genuine or to be signed by the proper party or parties.

 

Section 7.06.  Indemnification.  Each Lender shall, ratably in accordance with its Commitment, indemnify the Agent and any Issuing Lender, their affiliates and their respective directors, officers, agents and employees, to the extent acting on behalf of the Agent or any Issuing Lender and to the extent not reimbursed by the Company, against any cost, expense (including counsel fees and disbursements), claim, demand, action, loss or liability (except such as result from such indemnitee’s gross negligence or willful misconduct) that such indemnitees may suffer or incur in connection with this Agreement, any Letter of Credit or any action taken or omitted by such indemnitees hereunder or thereunder.

 

Section 7.07.  Credit Decision.  Each Lender acknowledges that it has, independently and without reliance upon the Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking any action under this Agreement.

 

Section 7.08.  Successor Agent.  The Agent may resign at any time by giving 30 days’ notice thereof to the Lenders and the Company.  Upon any such resignation, the Required Lenders shall have the right to appoint a successor Agent.  If no successor Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent gives notice of resignation (such 30-day period, the “Lender Appointment Period”), then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a commercial bank organized or licensed under the laws of the United States of America or of any State thereof and having a combined capital and surplus of at least $50,000,000.  Upon the acceptance of its appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights and duties of the retiring Agent.  In addition and without any obligation on the part of the retiring Agent to appoint, on behalf of the Lenders, a successor Agent, the retiring Agent may at any time following the occurrence of an Agent Resignation Event and upon or after the end of the Lender Appointment Period notify the Company and the Lenders that no qualifying Person has accepted appointment as successor Agent and the effective date of such retiring Agent’s resignation, which effective date shall be no earlier than three Domestic Business Days after the date of such notice.  Upon the resignation effective date established in such notice and regardless of whether a successor Agent has been appointed and accepted such appointment, the retiring Agent’s resignation shall nonetheless become effective and the retiring Agent shall be discharged from its duties and obligations as Agent hereunder.  After any retiring Agent’s resignation hereunder as Agent, the provisions of this Article 7 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent.

 

Section 7.09.  Agent’s Fee.  The Company shall pay to the Agent for its own account fees in the amounts and at the times previously agreed upon between the Company and the Agent.

 

ARTICLE 8
 CHANGE IN CIRCUMSTANCES

 

Section 8.01.  Basis for Determining Interest Rate Inadequate or Unfair.  If on or prior to the first day of any Interest Period for any Fixed Rate Loans:

 

(a)     the Agent determines that (i) deposits in dollars (in the applicable amounts) are not generally available in the relevant market for such Interest Period or (ii) reasonable means do not exist for ascertaining the Euro-Dollar Rate, or

 

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(b)     in the case of Euro-Dollar Loans, Lenders having 50% or more of the aggregate amount of the Commitments advise the Agent that the London Interbank Offered Rate as determined by the Agent will not adequately and fairly reflect the cost to such Lenders of funding their Euro-Dollar Loans for such Interest Period,

 

the Agent shall forthwith give notice thereof to the Company and the Lenders, whereupon until the Agent notifies the Company that the circumstances giving rise to such suspension no longer exist, (i) the obligations of the Lenders to make Euro-Dollar Loans, or to continue or convert outstanding Loans as or into Euro-Dollar Loans, shall be suspended and (ii) each outstanding Euro-Dollar Loan shall be converted into a Base Rate Loan on the last day of the then current Interest Period applicable thereto.  Unless the Company notifies the Agent at least two Domestic Business Days before the date of any Fixed Rate Borrowing for which a Notice of Borrowing has previously been given that it elects not to borrow on such date, (i) if such Fixed Rate Borrowing is a Euro-Dollar Borrowing, such Borrowing shall instead be made as a Base Rate Borrowing and (ii) if such Fixed Rate Borrowing is a Competitive Bid LIBOR Borrowing, the Competitive Bid LIBOR Loans comprising such Borrowing shall bear interest for each day from and including the first day to but excluding the last day of the Interest Period applicable thereto at the Base Rate for such day.

 

Section 8.02.  Illegality.  (a) If a Change in Law shall make it unlawful or impossible for any Lender (or its Euro-Dollar Lending Office) to make, maintain or fund its Euro-Dollar Loans and such Lender shall so notify the Agent, the Agent shall forthwith give notice thereof to the other Lenders and the Company, whereupon until such Lender notifies the Company and the Agent that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make Euro-Dollar Loans, or to convert outstanding Loans into Euro-Dollar Loans or continue outstanding Loans as Euro-Dollar Loans, shall be suspended.  Before giving any notice to the Agent pursuant to this Section 8.02, such Lender shall designate a different Euro-Dollar Lending Office if such designation will avoid the need for giving such notice and will not, in the sole judgment of such Lender, be otherwise disadvantageous to such Lender.

 

(b)     If such notice is given, each Euro-Dollar Loan of such Lender then outstanding shall be converted to a Base Rate Loan either (i) on the last day of the then current Interest Period applicable to such Euro-Dollar Loan if such Lender may lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan to such day or (ii) immediately if such Lender shall determine that it may not lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan to such day.  Interest and principal on any such Base Rate Loan shall be payable on the same dates as, and on a pro rata basis with, the interest and principal payable on the related Euro-Dollar Loans of the other Lenders.

 

Section 8.03.  Increased Cost and Reduced Return.  (a) If a Change in Law shall impose, modify or deem applicable any reserve (including, without limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System, but excluding with respect to any Euro-Dollar Loan any such requirement included in an applicable Euro-Dollar Reserve Percentage), special deposit, insurance assessment or similar requirement against assets of, deposits with or for the account of, or credit (including letters of credit and participations therein) extended by, any Lender (or its Applicable Lending Office) or any Issuing Lender or shall impose on any Lender (or its Applicable Lending Office) or any Issuing Lender or on the London interbank market any other condition affecting its Fixed Rate Loans, the Letters of Credit, its Note or its obligation to make Fixed Rate Loans or its obligations hereunder in respect of Letters of Credit and the result of any of the foregoing is to increase the cost to such Lender (or its Applicable Lending Office) or such Issuing Lender of making or maintaining any Fixed Rate Loan or of issuing or participating in any Letters of Credit, or to reduce the amount of any sum received or receivable by such Lender (or its Applicable Lending Office) or such Issuing Lender under this Agreement or under its Note with respect thereto, by an amount deemed by such Lender or Issuing 

 

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Lender to be material, then, so long as such Lender or Issuing Lender generally requires similar obligors under other credit facilities of this type made available by such Lender or such Issuing Lender to similarly so compensate such Lender or such Issuing Lender, within 15 days after demand by such Lender or Issuing Lender (with a copy to the Agent), the Company shall pay to such Lender or Issuing Lender such additional amount or amounts as will compensate such Lender or Issuing Lender for such increased cost or reduction.

 

(b)     If any Lender shall have determined that a Change in Law has or would have the effect of reducing the rate of return on capital of such Lender (or its Parent) as a consequence of such Lender’s obligations hereunder to a level below that which such Lender (or its Parent) could have achieved but for such Change in Law (taking into consideration its policies with respect to capital adequacy or liquidity requirements) by an amount deemed by such Lender to be material, then from time to time, so long as such Lender generally requires similar obligors under other credit facilities of this type made available by such Lender to similarly so compensate such Lender, within 15 days after demand by such Lender (with a copy to the Agent), the Company shall pay to such Lender such additional amount or amounts as will compensate such Lender (or its Parent) for such reduction.

 

(c)     If a Change in Law shall subject any Lender or Issuing Lender to any taxes (other than Indemnified Taxes and Taxes described in clauses (a) through (e) of the definition of Excluded Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations hereunder, or its deposits, reserves, other liabilities or capital attributable thereto, and the result shall be to increase the cost to such Lender or Issuing Lender of making or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender or Issuing Lender of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or Issuing Lender hereunder (whether of principal, interest or otherwise), then, so long as such Lender or Issuing Lender generally requires similar obligors under other credit facilities of this type made available by such Lender or such Issuing Lender to similarly so compensate such Lender or such Issuing Lender, within 15 days after demand by such Lender or Issuing Lender (with a copy to the Agent), the Company will pay to such Lender or Issuing Lender such additional amount or amounts as will compensate such Lender or Issuing Lender for such additional costs incurred or reduction suffered.

 

(d)     Each Lender or Issuing Lender will promptly notify the Company and the Agent of any event of which it has knowledge, occurring after the Closing Date, which will entitle such Lender or Issuing Lender to compensation pursuant to this Section 8.03 and will designate a different Applicable Lending Office if such designation will avoid the need for, or reduce the amount of, such compensation and will not, in the sole judgment of such Lender or Issuing Lender, be otherwise disadvantageous to such Lender or Issuing Lender.  A certificate of any Lender or Issuing Lender claiming compensation under this Section 8.03 and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error.  In determining such amount, such Lender or Issuing Lender may use any reasonable averaging and attribution methods.  Notwithstanding the foregoing subsections of this Section 8.03, the Company shall only be obligated to compensate any Lender or Issuing Lender for any amount arising or accruing during (i) any time or period commencing not more than 90 days prior to the date on which such Lender or Issuing Lender notifies the Agent and the Company that it proposes to demand such compensation and identifies to the Agent and the Company the statute, regulation or other basis upon which the claimed compensation is or will be based and (ii) any time or period during which, because of the retroactive application of such statute, regulation or other such basis, such Lender or Issuing Lender did not know that such amount would arise or accrue.

 

(e)     Failure or delay on the part of any Lender or any Issuing Lender to demand compensation pursuant to this Section 8.03 shall not constitute a waiver of such Lender’s or such Issuing Lender’s right to demand such compensation, as the case may be; provided that the Company shall not be required to 

 

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compensate a Lender or an Issuing Lender pursuant to this Section 8.03 for any increased costs or reductions incurred more than 90 days prior to the date that such Lender or such Issuing Lender, as the case may be, notifies the Company of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or Issuing Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 90-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

Section 8.04.  Taxes.

 

(a)     Any and all payments by the Company to or for the account of any Lender, any Issuing Lender or the Agent under any Loan Document shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto (collectively, “Taxes”), except as required by applicable law.  If the Company or the Agent (the “Withholding Agent”) shall be required by law to deduct any Taxes from or in respect of any sum payable under any Loan Document to any Lender, any Issuing Lender or the Agent, (i) if such Taxes are Indemnified Taxes, the sum payable by the Company shall be increased as necessary so that after making such deductions (including such deductions applicable to additional sums payable under this Section 8.04) such Lender or Issuing Lender or the Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been required; (ii) such Withholding Agent shall make such deductions; (iii) such Withholding Agent shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law and (iv) if the Withholding Agent is the Company, the Company shall furnish to the Agent, at its address referred to in Section 9.01, the original or a certified copy of a receipt evidencing payment thereof or other evidence satisfactory to the Agent.

 

(b)     In addition, except to the extent attributable to a transfer under Section 9.06, the Company agrees to pay any present or future stamp or documentary Taxes and any other excise or property Taxes, or charges or similar levies which arise from any payment made under any Loan Document or from the execution or delivery of, or otherwise with respect to, any Loan Document (hereinafter referred to as “Other Taxes”).

 

(c)     The Company agrees to indemnify each Lender, each Issuing Lender and the Agent for the full amount of Indemnified Taxes or Other Taxes (including, without limitation, any Indemnified Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section 8.04) paid by such Lender, including any Issuing Lender, or the Agent (as the case may be) and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto; provided, the Company shall not be obligated to indemnify any party hereunder pursuant to this Section 8.04 for penalties, interest or similar liabilities arising therefrom or with respect thereto to the extent such penalties, interest or similar liabilities are attributable to the gross negligence or willful misconduct by such party.  This indemnification shall be paid within 15 days after such Lender, including any Issuing Lender, or the Agent (as the case may be) makes written demand therefor.

 

(d)     Any Lender, including any Issuing Lender, that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Company and the Agent, at the time or times reasonably requested by the Company or the Agent, such properly completed and executed documentation reasonably requested by the Company or the Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, including any Issuing Lender, if requested by the Company or the Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Company or the Agent as will enable the Company or the Agent to determine whether or not such Lender is subject to any withholding (including backup withholding) or information reporting requirements.  

 

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Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Sections 8.04(e), (f), (g) and (h) below) shall not be required if in the Lender’s or Issuing Lender’s, as applicable, judgment such completion, execution or submission would subject such Lender or Issuing Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender or Issuing Lender.

 

(e)     Without limiting the foregoing, at the times indicated herein, each Lender, including each Issuing Lender, organized under the laws of a jurisdiction outside the United States shall provide the Company and the Agent with duly and accurately executed originals of Internal Revenue Service form W-8BEN, W-8BEN-E, W-8IMY (accompanied by a form W-8ECI, W-8BEN, W-8BEN-E, W-9 or other certification documents from each beneficial owner, as applicable) or W-8ECI (in each case accompanied by any statements which may be required under applicable Treasury regulations), as appropriate, or any successor form prescribed by the Internal Revenue Service, certifying (if applicable) that such Lender is entitled to receive payments under this Agreement (i) without deduction or withholding of any United States federal income Taxes or (ii) subject to a reduced rate of United States federal withholding Tax, unless, in each case of clause (i) and (ii) of this Section 8.04(e), an event (including, without limitation, any change in treaty, law or regulation) has occurred prior to the date on which any such delivery would otherwise be required which renders such forms inapplicable or which would prevent the Lender from duly completing and delivering any such form with respect to it and the Lender advises the Company and the Agent that it is not capable of receiving payments subject to a reduced rate of United States withholding tax or without any deduction or withholding of such Taxes.  Such forms shall be provided (x) on or prior to the date of the Lender’s execution and delivery of this Agreement in the case of each Lender listed on the signature pages hereof, and on or prior to the date on which it becomes a Lender in the case of each other Lender, and (y) on or before the date that such form expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent form so delivered by the Lender.  If the form provided by a Lender at the time such Lender first becomes a party to this Agreement indicates a United States interest withholding Tax rate in excess of zero or if at such time such Lender is otherwise subject to a United States interest withholding Tax rate in excess of zero, United States withholding Tax at such rate shall be considered “Excluded Taxes”, except to the extent the assignor of such Lender was entitled, at the time of such assignment, to receive additional amounts from the Company with respect to such withholding Taxes pursuant to Section 8.04(a).  In addition, to the extent that for reasons other than a change of treaty, law or regulation any Lender becomes subject to an increased rate of United States interest withholding Tax while it is a party to this Agreement, United States withholding Tax at such increased rate shall be considered “Excluded Taxes”.

 

(f)      Any Lender, including any Issuing Lender, that is a “United States person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code shall deliver to the Company and the Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of the Company or the Agent), duly and accurately executed originals of Internal Revenue Service form W-9 certifying, to the extent such Lender is legally entitled to do so, that such Lender is not subject to U.S. Federal backup withholding Tax.  For the avoidance of doubt, such Tax is an “Excluded Tax”.

 

(g)     If a payment made to a Lender, including any Issuing Lender, under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Company and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Company or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably 

 

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requested by the Company or the Agent as may be necessary for the Company or the Agent to comply with its obligations under FATCA, to determine that such Lender has or has not complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for the purposes of this Section 8.04(g), “FATCA” shall include any amendments made to FATCA after the date of this Agreement, whether or not included in the definition of FATCA.

 

(h)     Each Lender, including each Issuing Lender, agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Company and the Agent in writing of its legal inability to do so.

 

(i)      For any period with respect to which a Lender, including any Issuing Lender, organized under the laws of a jurisdiction outside the United States has failed to provide the Company and the Agent with the appropriate form pursuant to Section 8.04(e) (unless such failure is excused by the terms of Section 8.04(e)), such Lender shall not be entitled to indemnification under Section 8.04(a) or 8.04(c) with respect to Taxes imposed by the United States.

 

(j)      Each Lender, including each Issuing Lender, shall severally indemnify the Agent for any Taxes and Excluded Taxes (but only to the extent that the Company has not already indemnified the Agent for such Taxes and Excluded Taxes and without limiting or expanding the obligation, if any, of the Company to do so), in each case attributable to such Lender that are paid or payable by the Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto.  This indemnification shall be made within 15 days from the date the Agent makes demand therefor.

 

(k)     Each party’s obligations under this Section 8.04 shall survive any assignment of rights by, or the replacement of, a Lender, the resignation or replacement of the Agent, the termination of the Commitments and the repayment, satisfaction or discharge of all other obligations under any Loan Document, subject to Section 8.03(d).

 

(l)      If the Agent or a Lender, including any Issuing Lender, determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Company or with respect to which the Company has paid additional amounts pursuant to this Section 8.04, it shall pay over such refund to the Company (but only to the extent of indemnity payments made, or additional amounts paid, by the Company under this Section 8.04 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses with respect to such refund of the Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that in no event will the Agent or the Lender be required to pay the Company any amount pursuant to this Section 8.04(l) which would place it in a less favorable net after-Tax position than it would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid; provided, further, that the Company, upon the request of the Agent or such Lender, agrees to repay the amount paid over to the Company (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Agent or such Lender in the event the Agent or such Lender is required to repay such refund to such Governmental Authority.  This Section 8.04(l) shall not be construed to require the Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Company or any other Person.

 

Section 8.05.  Base Rate Loans Substituted for Affected Fixed Rate Loans.  If (a) the obligation of any Lender to make, or to continue or convert outstanding Loans as or to, Euro-Dollar Loans has been suspended pursuant to Section 8.02 or (b) any Lender has demanded compensation under Section 8.03 or 

 

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8.04 with respect to its Euro-Dollar Loans and the Company shall, by at least five Euro-Dollar Business Days’ prior notice to such Lender through the Agent, have elected that the provisions of this Section 8.05 shall apply to such Lender, then, all Loans which would otherwise be made by such Lender as (or continued as or converted to) Euro-Dollar Loans shall be made instead as Base Rate Loans (on which interest and principal shall be payable contemporaneously with the related Fixed Rate Loans of the other Lenders).  If such Lender notifies the Company that the circumstances giving rise to such suspension or demand for compensation no longer exist, the principal amount of each such Base Rate Loan shall be converted into a Euro-Dollar Loan on the first day of the next succeeding Interest Period applicable to the related Euro-Dollar Loans of the other Lenders.

 

Section 8.06.  Mitigation Obligations; Replacement of Lenders. (a)  If any Lender, including any Issuing Lender, requests compensation under Section 8.03, or if the Company is required to pay any additional amount to any Lender, including any Issuing Lender, or any Governmental Authority for the account of any Lender, including any Issuing Lender, pursuant to Section 8.04, then such Lender will designate a different Applicable Lending Office for funding or booking its Loans hereunder or assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 8.03 or Section 8.04, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Company hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)     If any Lender, including any Issuing Lender, requests compensation under Section 8.03, or if the Company is required to pay any additional amount to any Lender, including any Issuing Lender, or any Governmental Authority for the account of any Lender, including any Issuing Lender, pursuant to Section 8.04, or if any Lender becomes a Defaulting Lender or an Affected Lender or invokes Section 8.02, or if any Lender shall refuse to consent to any waiver, amendment or other modification that would otherwise require such Lender’s consent but to which the Required Lenders have consented, then the Company may, at its sole expense and effort, upon notice to such Lender and the Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.06), all its interests, rights and obligations under this Agreement (other than its existing rights under Sections 8.03 and 8.04) to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) in the case of any such assignment to a Person that is not a Lender, the Company shall have received the prior written consent of the Agent and each Issuing Lender, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and funded participations in Letter of Credit Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Company or the relevant Company (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 8.03 or 8.04, such assignment will result in a reduction in such compensation or payment.

 

ARTICLE 9
 MISCELLANEOUS

 

Section 9.01.  Notices.   (a)  All notices, requests and other communications to any party hereunder shall be in writing (including bank wire, telex, facsimile transmission or similar writing) and shall be given to such party:  (x) in the case of the Company or the Agent, at its address, facsimile number or telex number set forth on the signature pages hereof, (y) in the case of any Lender, at its address, facsimile number or telex number set forth in its Administrative Questionnaire or (z) in the case of any 

 

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party, such other address, facsimile number or telex number as such party may hereafter specify for the purpose by notice to the Agent and the Company.  Each such notice, request or other communication shall be effective (i) if given by telex, when such telex is transmitted to the telex number specified in this Section 9.01 and the appropriate answerback is received, (ii) if given by facsimile transmission, when transmitted to the facsimile number specified in this Section 9.01 and confirmation of receipt is received, (iii) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iv) if given by any other means, when delivered at the address specified in this Section 9.01; provided that notices to the Agent under Article 2 or Article 8 shall not be effective until received.

 

(b)     Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Agent; provided that the foregoing shall not apply to notices pursuant to Article 2 unless otherwise agreed by the Agent and the applicable Lender.  The Agent or the Company may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

 

Section 9.02.  No Waivers.  No failure or delay by the Agent or any Lender in exercising any right, power or privilege hereunder or under any Note or under any Letters of Credit shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

Section 9.03.  Expenses; Indemnification.   (a) The Company shall pay (i) all reasonable out-of-pocket expenses of the Agent, limited in the case of counsel to the reasonable fees and disbursements of a single special counsel for the Agent, in connection with the preparation and administration of this Agreement, any waiver or consent hereunder or any amendment hereof or any Default or alleged Default hereunder and (ii) if an Event of Default occurs, all reasonable out-of-pocket expenses incurred by the Agent and each Lender (including each Issuing Lender), limited in the case of counsel to the reasonable fees and disbursements of a single outside counsel for the Agent and the Lenders (including each Issuing Lender) (and, solely in the case of a conflict of interest, one additional counsel to each group of similarly situated affected Persons), taken as a whole, in connection with such Event of Default and collection, bankruptcy, insolvency and other enforcement proceedings resulting therefrom.

 

(b)     The Company agrees to indemnify the Agent and each Lender (including each Issuing Lender), their respective affiliates and the respective directors, officers, agents and employees of the foregoing (each an “Indemnitee”) and hold each Indemnitee harmless from and against any and all liabilities, losses, damages, costs and expenses of any kind, including, without limitation, the reasonable fees and disbursements of counsel (but limited, in the case of counsel, to the reasonable attorney’s fees of a single outside counsel for the Indemnitees, taken as a whole, except solely in the case of a conflict of interest, one additional counsel to each group of similarly situated affected Indemnitees), which may be incurred by such Indemnitee in connection with any investigative, administrative or judicial proceeding (whether or not such Indemnitee shall be designated a party thereto) brought or threatened relating to or arising out of this Agreement or any actual or proposed use of any proceeds of any Loans or Letters of Credit hereunder; provided that no Indemnitee shall have the right to be indemnified hereunder for any liabilities, losses, damages, costs or expenses (i) to the extent resulting from such Indemnitee’s or any of its Related Parties’ gross negligence, bad faith or willful misconduct or material breach by such Indemnitee or by any of its Related Parties of any obligations hereunder, as determined by a court of competent jurisdiction in a final non-appealable judgment, or (ii) to the extent arising from any brought or threatened investigative, administrative or judicial proceeding solely among Indemnitees other than any

 

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claims involving the Agent or Arrangers in their capacity as such and other than any claims arising out of any act or omission by the Company or any of its Affiliates.  A “Related Party” of an indemnified Person means (1) any controlling Person or controlled affiliate of such indemnified Person, (2) the respective directors, officers or employees of such indemnified Person or any of its controlling Persons or controlled affiliates and (3) the respective agents or representatives of such indemnified Person or any of its controlling Persons or controlled affiliates, in the case of this clause (3), acting on behalf of or at the instructions of such indemnified Person, controlling Person or controlled affiliate.  The Company shall not be liable for any compromise or settlement entered into by an indemnified person without its consent, which consent shall not be unreasonably withheld.  Promptly after the receipt by the indemnified person of notice of its involvement in any investigative, administrative or judicial proceeding, such indemnified person shall, if a claim in respect thereof is to be made against the Company under this indemnification, notify the Company in writing of such involvement, unless prohibited by applicable law or regulations or if requested by any governmental agency or other regulatory authority (including any self-regulatory organization having, or claiming to have, jurisdiction), but failure so to notify the Company shall not relieve the Company from any liability which it may otherwise have to the indemnified person under this indemnification except to the extent that the Company actually suffers prejudice as a result of such failure.  This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim.

 

Section 9.04.  Sharing of Set-offs.  Each Lender agrees that if it shall, by exercising any right of set-off or counterclaim or otherwise, receive payment of a proportion of the aggregate amount of principal and interest then due with respect to the Loans and Letter of Credit Liabilities held by it which is greater than the proportion received by any other Lender in respect of the aggregate amount of principal and interest then due with respect to the Loans and Letter of Credit Liabilities held by such other Lender, the Lender receiving such proportionately greater payment shall purchase such participations in the Loans held by the other Lenders, and such other adjustments shall be made, as may be required so that all such payments of principal and interest with respect to the Loans and Letter of Credit Liabilities held by the Lenders shall be shared by the Lenders pro rata; provided that nothing in this Section 9.04 shall impair the right of any Lender or Issuing Lender to exercise any right of set-off or counterclaim it may have and to apply the amount subject to such exercise to the payment of indebtedness of the Company other than its indebtedness hereunder.  The Company agrees, to the fullest extent it may effectively do so under applicable law, that any holder of a participation in a Loan or Letter of Credit Liability, if acquired pursuant to the foregoing arrangements or if the Company has otherwise received notice of the granting of such participation, may exercise rights of set-off or counterclaim and other rights with respect to such participation as fully as if such holder of a participation were a direct creditor of the Company in the amount of such participation.

 

Section 9.05.  Amendments and Waivers.  Any provision of this Agreement or the Notes may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the Company and the Required Lenders (and, if the rights or duties of any Issuing Lender or the Agent are affected thereby, by the Agent or such Issuing Lender, as the case may be); provided that no such amendment or waiver shall (a) unless signed by each Lender affected by such amendment or waiver, (i) increase or decrease the Commitment of any Lender (except for a ratable decrease in the Commitments of all Lenders) or subject any Lender to any additional obligation, (ii) reduce the principal of or rate of interest on any Loan or the amount to be reimbursed in respect of any Letter of Credit or any interest thereon, or any fees hereunder (other than any fees referred to in Section 2.09(b)(ii) or Section 2.18(b)(ii) which may be mutually agreed (and without need of consent or agreement from any other party) between the Company and each Issuing Lender from time to time) or (iii) postpone the date fixed for any payment of principal of or interest on any Loan or for reimbursement in respect of any Letter of Credit or any fees hereunder or for the termination of any Commitment, or (except as expressly provided in Section 2.18) the expiry date of any Letter of Credit or (b) unless signed by all Lenders (other than a Defaulting 

 

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Lender), change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans, or the number of Lenders which shall be required for the Lenders or any of them to take any action under this Section 9.05 or any other provision of this Agreement.

 

Section 9.06.  Successors and Assigns.  (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that the Company may not assign or otherwise transfer any of its rights under this Agreement without the prior written consent of all Lenders.

 

(b)     Any Lender may at any time grant to one or more banks or other institutions (each a “Participant”) participating interests in its Commitment, including all or a portion of its Loans and/or Letter of Credit Liabilities at the time owing to it.  In the event of any such grant by a Lender of a participating interest to a Participant, whether or not upon notice to the Company and the Agent, such Lender shall remain responsible for the performance of its obligations hereunder, and the Company and the Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which any Lender may grant such a participating interest shall provide that such Lender shall retain the sole right and responsibility to enforce the obligations of the Company hereunder including, without limitation, the right to approve any amendment, modification or waiver of any provision of this Agreement; provided that such participation agreement may provide that such Lender will not agree to any modification, amendment or waiver of this Agreement described in clause (i), (ii) or (iii) of Section 9.05 without the consent of the Participant.  The Company agrees that each Participant shall, to the extent provided in its participation agreement, be entitled to the benefits of Article 8 with respect to its participating interest; provided the Participant complies with the obligations of Sections 8.04(d), (e), (f), (g) and (h) as if it were a Lender (it being understood that the documentation required shall be delivered to the selling Lender and, if required by law for reduced withholding, copies shall be delivered to the Company and the Agent).  An assignment or other transfer which is not permitted by subsection (c) or (d) below shall be given effect for purposes of this Agreement only to the extent of a participating interest granted in accordance with this subsection (b).  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Company, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations or, if different, under Sections 871(h) or 881(c) of the Internal Revenue Code.  The entries in the Participant Register shall be conclusive absent clearly demonstrable error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

 

(c)     Any Lender may at any time assign to one or more banks or other institutions (each an “Assignee”) all, or a proportionate part (equivalent to an initial Commitment of not less than $5,000,000) of its rights and obligations under this Agreement and its Note, and such Assignee shall assume such rights and obligations, pursuant to an Assignment and Assumption Agreement in substantially the form of Exhibit G hereto executed by such Assignee and such transferor Lender, with (and subject to) the consent of each Issuing Lender, the Agent and (so long as no Event of Default exists) of the Company, such consents of the Company, the Agent and each Issuing Lender not to be unreasonably withheld; provided that, (i) if an Assignee is an Approved Fund, an affiliate of such transferor Lender or was a Lender immediately before such assignment, no consent of the Company shall be required and (ii) the Company 

 

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shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Agent within ten Domestic Business Days after having received notice thereof, and provided further that such assignment may, but need not, include rights of the transferor Lender in respect of outstanding Competitive Bid Loans.  Upon execution and delivery of such instrument and payment by such Assignee to such transferor Lender of an amount equal to the purchase price agreed between such transferor Lender and such Assignee, such Assignee shall be a Lender party to this Agreement and shall have all the rights and obligations of a Lender with a Commitment as set forth in such instrument of assumption, and the transferor Lender shall be released from its obligations hereunder to a corresponding extent, and no further consent or action by any party shall be required.  Upon the consummation of any assignment pursuant to this subsection (c), the Agent shall record in the Register the information relating to such assignment, and the transferor Lender, the Agent and the Company shall make appropriate arrangements so that, if the underlying Note is outstanding, a new Note is issued to the Assignee.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.  In connection with any such assignment, the transferor Lender shall pay to the Agent an administrative fee for processing such assignment in the amount of $3,500.  If the Assignee is not incorporated under the laws of the United States of America or a state thereof, it shall deliver to the Company and the Agent certification as to exemption from deduction or withholding of any United States federal income Taxes in accordance with Section 8.04.  The Agent, acting solely for this purpose as a non-fiduciary agent of the Company, shall maintain at one of its offices in New York a copy of each Assignment and Assumption Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Company, the Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Company and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(d)     Any Lender may at any time assign all or any portion of its rights under this Agreement and its Note to a Federal Reserve Bank.  No such assignment shall release the transferor Lender from its obligations hereunder.

 

(e)     No Assignee, Participant or other transferee of any Lender’s rights shall be entitled to receive any greater payment under Section 8.03 or 8.04 than such Lender would have been entitled to receive with respect to the rights transferred, unless such transfer is made with the Company’s prior written consent or by reason of the provisions of Section 8.02, 8.03 or 8.04 requiring such Lender to designate a different Applicable Lending Office under certain circumstances or at a time when the circumstances giving rise to such greater payment did not exist.

 

Section 9.07.  Designated Lenders.  (a) Subject to the provisions of this subsection (a), any Lender may at any time designate an Eligible Designee to provide all or a portion of the Loans to be made by such Lender pursuant to this Agreement; provided that such designation shall not be effective unless the Company and the Agent consent thereto (which consents shall not be unreasonably withheld).  When a Lender and its Eligible Designee shall have signed an agreement substantially in the form of Exhibit H hereto (a “Designation Agreement”) and the Company and the Agent shall have signed their respective consents thereto, such Eligible Designee shall become a Designated Lender for purposes of this Agreement.  The Designating Lender shall thereafter have the right to permit such Designated Lender to provide all or a portion of the Loans to be made by such Designating Lender pursuant to Section 2.01 or 2.03, and the making of such Loans or portion thereof shall satisfy the obligation of the Designating Lender to the same extent, and as if, such Loans or portion thereof were made by the Designating Lender.  As to any Loans or portion thereof made by it, each Designated Lender shall have all the rights that a Lender making such Loans or portion thereof would have had under this Agreement and otherwise; 

 

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provided that (x) its voting rights under this Agreement shall be exercised solely by its Designating Lender and (y) its Designating Lender shall remain solely responsible to the other parties hereto for the performance of such Designated Lender’s obligations under this Agreement, including its obligations in respect of the Loans or portion thereof made by it.  No additional Note shall be required to evidence the Loans or portion thereof made by a Designated Lender; and the Designating Lender shall be deemed to hold its Note as agent for its Designated Lender to the extent of the Loans or portion thereof funded by such Designated Lender.  Each Designating Lender shall act as administrative agent for its Designated Lender and give and receive notices and other communications on its behalf.  Any payments for the account of any Designated Lender shall be paid to its Designating Lender as administrative agent for such Designated Lender and neither the Company nor the Agent shall be responsible for any Designating Lender’s application of such payments.  In addition, any Designated Lender may, with notice to (but without the prior written consent of) the Company and the Agent, (i) assign all or portions of its interest in any Loans to its Designating Lender or to any financial institutions consented to by the Company and the Agent that provide liquidity and/or credit facilities to or for the account of such Designated Lender to support the funding of Loans or portions thereof made by it and (ii) disclose on a confidential basis pursuant to a confidentiality agreement satisfactory in form and substance to the Company any non-public information relating to its Loans or portions thereof to any rating agency, commercial paper dealer or provider of any guarantee, surety, credit or liquidity enhancement to such Designated Lender.

 

(b)     Each party to this Agreement agrees that it will not institute against, or join any other person in instituting against, any Designated Lender any bankruptcy, insolvency, reorganization or other similar proceeding under any federal or state bankruptcy or similar law, for one year and a day after all outstanding senior indebtedness of such Designated Lender is paid in full.  The Designating Lender for each Designated Lender agrees to indemnify, save, and hold harmless each other party hereto for any loss, cost, damage and expense arising out of its inability to institute any such proceeding against such Designated Lender.  This subsection (b) shall survive the termination of this Agreement.

 

(c)     Each Lender that designates a Designated Lender to provide all or a portion of the Loans to be made by such Lender pursuant to this Agreement shall, acting solely for this purpose as a non-fiduciary agent of the Company, maintain a register on which it enters the name and address of each Designated Lender and the principal amounts (and stated interest) of each Designated Lender’s interest in the Loans or other obligations under the Loan Documents (the “Designated Lender Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Designated Lender Register to any Person (including the identity of any Designated Lender or any information relating to a Designated Lender’s interest in any commitments, loans, or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such commitment, loan, or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations or, if different, under Section 871(h) or 881(c) of the Internal Revenue Code.  The entries in the Designated Lender Register shall be conclusive absent clearly demonstrable error, and such Lender shall treat each Person whose name is recorded in the Designated Lender Register as the owner of such Loan for all purposes of this Agreement notwithstanding any notice to the contrary.

 

Section 9.08.  Collateral.  Each of the Lenders represents to the Agent and each of the other Lenders that it in good faith is not relying upon any “margin stock” (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement.

 

Section 9.09.  Governing Law; Submission to Jurisdiction.  This Agreement and each Note shall be governed by and construed in accordance with the laws of the State of New York.  The Company hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State court sitting in New York City, for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby.  The 

 

54











 

Company irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

 

Section 9.10.  Counterparts; Integration.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement constitutes the entire agreement and understanding among the parties hereto and, except as expressly provided in the Commitment Letter or in the Fee Letters, supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.

 

Section 9.11.  Waiver of Jury Trial.  EACH OF THE COMPANY, THE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 9.12.  Confidentiality.  Each of the Agent, the Issuing Lenders and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to their and their affiliates’ directors, officers, employees, third party service providers and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners) (in which case the Agent or such Lender or Issuing Lender, to the extent practicable and so long as it is permitted by law or applicable regulatory authority and except in connection with any request as part of a regulatory examination or audit, agrees to inform the Company promptly thereof), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process (in which case the Agent or such Lender or Issuing Lender, to the extent practicable and so long as it is permitted by law or applicable regulatory authority and except in connection with any order or request as part of a regulatory examination or audit, agrees to inform the Company promptly thereof), (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section 9.12, (i) to any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) to any direct or indirect contractual counterparty in swap agreements or such contractual counterparty’s professional advisor (so long as such contractual counterparty or professional advisor to such contractual counterparty agrees to be bound by the provisions of this Section 9.12), (g) to any nationally recognized rating agency that requires access to information about a Lender’s investment portfolio in connection with ratings issues with respect to such Lender, (h) with the consent of the Company or (i) to the extent such Information becomes publicly available other than as a result of a breach of this Section 9.12.  For the purposes of this Section 9.12, “Information” means all information received directly or indirectly from the Company relating to the Company or its business, other than any such information that is available to the Agent, any Issuing Lender or any Lender on a non-confidential basis and other than information pertaining to this Agreement routinely provided by arrangers to data service providers, including league table providers, that serve the lending industry.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

Section 9.13.  USA Patriot Act.  Each Lender that is subject to the requirements of the Patriot Act hereby notifies the Company that pursuant to the requirements of the Patriot Act, it is required to obtain, 

 

55











 

verify and record information that identifies the Company, which information includes the name and address of the Company and other information that will allow such Lender to identify the Company in accordance with the Patriot Act.

 

Section 9.14.  No Fiduciary Relationship.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Company acknowledges and agrees, and acknowledges its affiliates’ understanding that (i)(A) the arranging and other services regarding this Agreement provided by the Agent, the Syndication Agents, the Arrangers and the Lenders (as used in this paragraph “Agent and Lender Parties”) are arm’s-length commercial transactions between the Company and its affiliates, on the one hand, and the Agent and Lender Parties, on the other hand, (B) the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate and (C) the Company is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii)(A) each of the Agent and Lender Parties is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Company or any of its affiliates, or any other Person and (B) none of the Agent and Lender Parties has any obligation to the Company or any of its affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Agent and Lender Parties and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company and its affiliates, and none of the Agent and Lender Parties has any obligation to disclose any of such interests to the Company or any of its affiliates.  To the fullest extent permitted by law, the Company hereby waives and releases any claims that it may have against the Agent and Lender Parties with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

Section 9.15.  Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)     the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)     the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)         a reduction in full or in part or cancellation of any such liability;

 

(ii)        a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)       the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

56











 

Section 9.16.  Right of Set-off.  If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured; provided that in the event that any Defaulting Lender shall exercise any such right of set-off, (x) all amounts so set off shall be paid over immediately to the Agent for further application in accordance with the provisions of Section 2.20 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Agent and the Lenders and (y) the Defaulting Lender shall provide promptly to the Agent a statement describing in reasonable detail the obligations owing to such Defaulting Lender as to which it exercised such right of set-off.  The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of set-off) which such Lender may have.  Each Lender agrees to notify the Company and the Agent promptly after any such set-off and application; provided that the failure to give such notice shall not affect the validity of such set-off and application.

 

57












 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	
 
    	
ROCKWELL COLLINS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas E. Stenske
    	
 
    
	
 
    	
Name:
    	
Douglas E. Stenske
    	
 
    
	
 
    	
Title:
    	
Vice President, Treasurer & Risk Management
    
	
 
    	
Address:
    	
400 Collins Rd NE
   Cedar Rapids, IA 52498
    
	
 
    	
Telecopy:
    	
319-295-0020
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
JPMORGAN CHASE BANK N.A., as Agent and as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert P. Kellas
    	
 
    
	
 
    	
Name:
    	
Robert P. Kellas
    	
 
    
	
 
    	
Title:
    	
Executive Director
    
	
 
    	
Address:
    	
JPMorgan Chase Bank, N.A.

JPMorgan Loan Services

500 Stanton Christiana Road

NCC 5, 1st Floor

Newark, DE 19713
    
	
 
    	
Attention: 
    	
Loan and Agency Services Group
    
	
 
    	
Telecopy:
    	
(302) 634-4250

(302) 634-1890
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
CITIBANK N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian Reed
    	
 
    
	
 
    	
Name:
    	
Brian Reed
    	
 
    
	
 
    	
Title:
    	
Managing Director
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
Wells Fargo Bank, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nathan R. Rantala
    	
 
    
	
 
    	
Name:
    	
Nathan R. Rantala
    	
 
    
	
 
    	
Title:
    	
Director
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
CREDIT AGRICOLE CORPORATE AND
   INVESTMENT BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark Koneval
    	
 
    
	
 
    	
Name:
    	
Mark Koneval
    	
 
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Gordon Yip
    	
 
    
	
 
    	
Name:
    	
Gordon Yip
    	
 
    
	
 
    	
Title:
    	
Director
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
MIZUHO BANK, LTD., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Donna DeMagistris
    	
 
    
	
 
    	
Name:
    	
Donna DeMagistris
    	
 
    
	
 
    	
Title:
    	
Authorized Signatory
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 












 

	
 
    	
HSBC BANK USA, NA as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew W McLaurin
    	
 
    
	
 
    	
Name:
    	
Matthew W McLaurin
    	
 
    
	
 
    	
Title:
    	
Director
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
THE BANK OF NEW YORK MELLON, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brandon Bouchard
    	
 
    
	
 
    	
Name:
    	
Brandon Bouchard
    	
 
    
	
 
    	
Title:
    	
Senior Credit Associate
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas J. Sterr
    	
 
    
	
 
    	
Name:
    	
Thomas J. Sterr
    	
 
    
	
 
    	
Title:
    	
Authorized Signatory
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
U.S. BANK NATIONAL ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ James N. DeVries
    	
 
    
	
 
    	
Name:
    	
James N. DeVries
    	
 
    
	
 
    	
Title:
    	
Senior Vice President
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
KeyBank National Association, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew J. Bradley
    	
 
    
	
 
    	
Name:
    	
Matthew J. Bradley
    	
 
    
	
 
    	
Title:
    	
Vice President
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
State Street Bank &   Trust Company, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrei Bourdine
    	
 
    
	
 
    	
Name:
    	
Andrei Bourdine
    	
 
    
	
 
    	
Title:
    	
Vice President
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
SUNTRUST BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas Parrott
    	
 
    
	
 
    	
Name:
    	
Thomas Parrott
    	
 
    
	
 
    	
Title:
    	
Managing Director
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 











 

	
 
    	
The Royal Bank of Scotland plc, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Simon Hamill
    	
 
    
	
 
    	
Name:
    	
Simon Hamill
    	
 
    
	
 
    	
Title:
    	
Director
    


 

 

 

[Signature Page to Rockwell Collins 5-Year Credit Agreement]

 












 

SCHEDULE 1.01

 

COMMITMENT SCHEDULE

 

	
Institution
    	
Initial Commitment
   Amount
    	
Acquisition Increase
   Date Adjustment
    	
Acquisition Increase
   Commitment Amount
    
	
JPMorgan   Chase Bank, N.A. 
    	
$176,000,000
    	
$44,000,000
    	
$220,000,000
    
	
Citibank,   N.A. 
    	
$176,000,000
    	
$44,000,000
    	
$220,000,000
    
	
Wells   Fargo Bank, N.A.
    	
$176,000,000
    	
$44,000,000
    	
$220,000,000
    
	
Crédit   Agricole Corporate and Investment Bank
    	
$120,000,000
    	
$30,000,000
    	
$150,000,000
    
	
Mizuho Bank, Ltd.
    	
$120,000,000
    	
$30,000,000
    	
$150,000,000
    
	
HSBC Bank USA, National   Association
    	
$72,000,000
    	
$18,000,000
    	
$90,000,000
    
	
The Bank of New York Mellon
    	
$72,000,000
    	
$18,000,000
    	
$90,000,000
    
	
The Bank of Tokyo-Mitsubishi   UFJ, Ltd.
    	
$72,000,000
    	
$18,000,000
    	
$90,000,000
    
	
U.S. Bank National Association
    	
$72,000,000
    	
$18,000,000
    	
$90,000,000
    
	
KeyBank National Association
    	
$36,000,000
    	
$9,000,000
    	
$45,000,000
    
	
State Street Bank and Trust   Company
    	
$36,000,000
    	
$9,000,000
    	
$45,000,000
    
	
SunTrust Bank
    	
$36,000,000
    	
$9,000,000
    	
$45,000,000
    
	
The Royal Bank of Scotland PLC
    	
$36,000,000
    	
$9,000,000
    	
$45,000,000
    
	
 

Total
    	
$1,200,000,000
    	
$300,000,000
    	
$1,500,000,000
    


 











 

SCHEDULE 2.01

 

PRICING SCHEDULE

 

The “Base Rate Margin,” “Euro-Dollar Margin” and “Facility Fee Rate” for any day are the respective rates per annum set forth below in the applicable row and column corresponding to the Pricing Level that apply on such day:

 

	
 

Pricing
    	
Level 1
    	
Level 2
    	
Level 3
    	
Level 4
    	
Level 5
    
	
Base   Rate Margin
    	
0.00%
    	
0.015%
    	
0.10%
    	
0.30%
    	
0.50%
    
	
Euro-Dollar   Margin
    	
0.91%
    	
1.015%
    	
1.10%
    	
1.30%
    	
1.50%
    
	
Facility   Fee Rate
    	
0.09%
    	
0.11%
    	
0.15%
    	
0.20%
    	
0.25%
    


 

For purposes of this Pricing Schedule, the following terms have the following meanings:

 

“Level 1 Pricing” applies on any day if on such day the Company’s unsecured long-term debt securities are rated A- or higher by S&P or A3 or higher by Moody’s.

 

“Level 2 Pricing” applies on any day if on such day Level 1 Pricing does not apply and the Company’s unsecured long-term debt securities are rated BBB+ or higher by S&P or Baa1 or higher by Moody’s.

 

“Level 3 Pricing” applies on any day if on such day Level 1 Pricing and Level 2 Pricing do not apply and the Company’s unsecured long-term debt securities are rated BBB or higher by S&P or Baa2 or higher by Moody’s.

 

“Level 4 Pricing” applies on any day if on such day Level 1 Pricing, Level 2 Pricing and Level 3 Pricing do not apply and the Company’s unsecured long-term debt securities are rated BBB- or higher by S&P or Baa3 or higher by Moody’s.

 

“Level 5 Pricing” applies on any day if no other Pricing Level applies on such day.

 

“Moody’s” means Moody’s Investors Service, Inc. (and any successor thereto).

 

“Pricing Level” refers to the determination of which of Level 1 Pricing, Level 2 Pricing, Level 3 Pricing, Level 4 Pricing or Level 5 Pricing applies.  Level 1 Pricing is the lowest Pricing Level and Level 5 Pricing the highest.

 

“S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc. (or any successor thereto).

 











 

The credit ratings to be utilized for purposes of this Pricing Schedule are those assigned to the senior unsecured long-term debt securities of the Company without third-party credit enhancement, and any rating assigned to any other debt security of the Company shall be disregarded.  The credit ratings in effect on any day are those in effect at the close of business on such day.  If the Company is split-rated and the ratings differential is one notch, the higher of the two ratings will apply (e.g., A-/Baa1 results in Level 1 Pricing).  If the Company is split-rated and the ratings differential is more than one notch, the average of the two ratings (or the higher of two intermediate ratings) shall be used (e.g., A-/Baa2 results in Level 2 Pricing; BBB+/Baa3 results in Level 3 pricing).  If the rating system of Moody’s or S&P shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations, the Company and the Lenders shall negotiate in good faith to amend the related definition in this Pricing Schedule to reflect such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the rating shall be determined by reference to the rating most recently in effect prior to such change or cessation.

 











 

SCHEDULE 2.18

 

ISSUING LENDERS

 

	
 

Institution

 
    	
 

Initial Commitment

 
    
	
JPMorgan   Chase Bank, N.A. 
    	
$100,000,000
    
	
Citibank,   N.A. 
    	
$100,000,000
    
	
Wells   Fargo Bank, N.A. 
    	
$100,000,000
    
	
Total
    	
$300,000,000
    


 











 

EXHIBIT A

 

[FORM OF] NOTE

 

New York, New York
 __________ __ , 20__

 

For value received, Rockwell Collins, Inc., a Delaware corporation (the “Company”), promises to pay to [·] (the “Lender”), for the account of its Applicable Lending Office, or to its registered Assignee, the unpaid principal amount of each Loan made by the Lender to the Company pursuant to the Credit Agreement referred to below on the Termination Date provided for in the Credit Agreement.  The Company promises to pay interest on the unpaid principal amount of each such Loan on the dates and at the rate or rates provided for in the Credit Agreement.  All such payments of principal and interest shall be made in lawful money of the United States in Federal or other immediately available funds at the office of JPMorgan Chase Bank, N.A., 383 Madison Avenue, New York, New York 10179.

 

All Loans made by the Lender, the respective types and maturities thereof and all repayments of the principal thereof shall be recorded by the Lender and, if the Lender so elects in connection with any transfer or enforcement hereof, appropriate notations to evidence the foregoing information with respect to each such Loan then outstanding may be endorsed by the Lender on the schedule attached hereto, or on a continuation of such schedule attached to and made a part hereof; provided that the failure of the Lender to make, or any error in making, any such recordation or endorsement shall not affect the obligations of the Company hereunder or under the Credit Agreement.

 

This note is one of the Notes referred to in the Five-Year Credit Agreement dated as of December 16, 2016 among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as Agent (as the same may be amended from time to time, the “Credit Agreement”).  Terms defined in the Credit Agreement are used herein with the same meanings.  Reference is made to the Credit Agreement for provisions for the prepayment hereof and the acceleration of the maturity hereof.

 

	
 
    	
ROCKWELL COLLINS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 

A-1











 

Note (contd.)

 

LOANS AND PAYMENTS OF PRINCIPAL

 

 

	
Date
    	
Amount of
   Loan
    	
Type of
   Loan
    	
Amount of
   Principal
   Repaid
    	
Maturity
   Date
    	
Notation
   Made By
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

A-2












 

EXHIBIT B

 

Form of Competitive Bid Quote Request

 

	
 
    	
[Date]
    	
 
    


 

To:                           JPMorgan Chase Bank, N.A. (the “Agent”)

 

From:           Rockwell Collins, Inc.

 

Re:                           Five-Year Credit Agreement (as the same may be amended from time to time, the “Credit Agreement”) dated as of December 16, 2016 among the Company, the Lenders party thereto and the Agent

 

We hereby give notice pursuant to Section 2.03 of the Credit Agreement that we request Competitive Bid Quotes for the following proposed Competitive Bid Borrowing(s):

 

Date of Borrowing:                                           

 

	
Principal Amount*
    	
Interest Period**
    


 

$

 

Such Competitive Bid Quotes should offer a Competitive Bid [Margin] [Absolute Rate].  [The applicable base rate is the London Interbank Offered Rate.]

 

Terms used herein have the meanings assigned to them in the Credit Agreement.

 

	
 
    	
ROCKWELL COLLINS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 

 

 

 

 

 

 

 

 




*  Amount must be $25,000,000 or a larger multiple of $1,000,000.

 

**  Not less than one month (LIBOR Auction) or not less than 7 days (Absolute Rate Auction), subject to the provisions of the definition of Interest Period.

 

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EXHIBIT C

 

Form of Invitation for Competitive Bid Quotes

 

To:                           [Name of Lender]

 

Re:                           Invitation for Competitive Bid Quotes to Rockwell Collins, Inc. (the “Company”)

 

Pursuant to Section 2.03 of the Five-Year Credit Agreement dated as of December 16, 2016 among the Company, the Lenders party thereto and the undersigned, as Agent, we are pleased on behalf of the Company to invite you to submit Competitive Bid Quotes to the Company for the following proposed Competitive Bid Borrowing(s):

 

Date of Borrowing:                                           

 

	
Principal Amount
    	
Interest Period
    


 

$

 

Such Competitive Bid Quotes should offer a Competitive Bid [Margin] [Absolute Rate].  [The applicable base rate is the London Interbank Offered Rate.]

 

Please respond to this invitation by no later than [2:00 p.m.] [9:30 a.m.] (New York City time) on [date].

 

	
 
    	
JPMORGAN CHASE BANK, N.A., as Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Officer
    


 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT D

 

Form of Competitive Bid Quote

 

To:                           JPMorgan Chase Bank, N.A., as Agent

 

Re:                           Competitive Bid Quote to Rockwell Collins, Inc. (the “Company”)

 

In response to your invitation on behalf of the Company dated                             ,         , we hereby make the following Competitive Bid Quote on the following terms:

 

1.                                    Quoting Lender:                                                                                          

 

2.                                    Person to contact at Quoting Lender:
                                                                

 

3.                                    Date of Borrowing:                                                *

 

4.                                    We hereby offer to make Competitive Bid Loan(s) in the following principal amounts, for the following Interest Periods and at the following rates:

 


	
Principal
   Amount**
    	
 
    	
Interest
   Period***
    	
 
    	
Competitive Bid
   [Margin]****[Absolute   Rate]*****
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    




 

[Provided, that the aggregate principal amount of Competitive Bid Loans for which the above offers may be accepted shall not exceed $                           .]*

 

We understand and agree that the offer(s) set forth above, subject to the satisfaction of the applicable conditions set forth in the Five-Year Credit Agreement

 




*  As specified in the related Invitation.

 

**  Principal amount bid for each Interest Period may not exceed principal amount requested.  Specify aggregate limitation if the sum of the individual offers exceeds the amount the Lender is willing to lend.  Bids must be made for $5,000,000 or a larger multiple of $1,000,000.

 

***  Not less than one month or not less than 7 days, as specified in the related Invitation.  No more than five bids are permitted for each Interest Period.

 

****  Margin over or under the London Interbank Offered Rate determined for the applicable Interest Period.  Specify percentage (to the nearest 1/10,000 of 1%) and specify whether “PLUS” or “MINUS”.

 

*****  Specify rate of interest per annum (to the nearest 1/10,000th of 1%).

 

 

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dated as of December 16, 2016 among the Company, the Lenders party thereto and yourselves, as Agent, irrevocably obligate(s) us to make the Competitive Bid Loan(s) for which any offer(s) are accepted, in whole or in part.

 

 

	
 
    	
Very truly yours,
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[NAME OF LENDER]
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Authorized Officer
    
						


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT E

 

[Reserved]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT F

 

[Reserved]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT G

 

[FORM OF] ASSIGNMENT AND ASSUMPTION AGREEMENT

 

AGREEMENT dated as of _________, ____ among [ASSIGNOR] (the “Assignor”), [ASSIGNEE] (the “Assignee”), ROCKWELL COLLINS, INC. (the “Company”) and JPMORGAN CHASE BANK, N.A., as Agent (the “Agent”).

 

W I T N E S S E T H

 

WHEREAS, this Assignment and Assumption Agreement (the “Agreement”) relates to the Five-Year Credit Agreement dated as of December 16, 2016 among the Company, the Assignor and the other Lenders party thereto, as Lenders, and the Agent (as the same may be amended from time to time, the “Credit Agreement”);

 

WHEREAS, as provided under the Credit Agreement, the Assignor has a Commitment to make Loans to the Company and purchase participations in Letters of Credit in an aggregate principal amount at any time outstanding not to exceed $__________;

 

WHEREAS, Committed Loans made to the Company by the Assignor under the Credit Agreement in the aggregate principal amount of $__________ are outstanding at the date hereof;

 

WHEREAS, the Assignor has Letter of Credit Liabilities in an aggregate amount of $__________ under the Credit Agreement at the date hereof; [and]

 

[WHEREAS, Competitive Bid Loans made to the Company by the Assignor under the Credit Agreement in the aggregate principal amount of $___________ are outstanding at the date hereof; and]

 

WHEREAS, the Assignor proposes to assign to the Assignee all of the rights of the Assignor under the Credit Agreement in respect of a portion of its Commitment thereunder in an amount equal to $__________, together with a corresponding portion of its outstanding Committed Loans and Letter of Credit Liabilities [and $________ of its outstanding Competitive Bid Loans] (the “Assigned Competitive Bid Loans”) (collectively, the “Assigned Amount”), and the Assignee proposes to accept assignment of such rights and assume the corresponding obligations from the Assignor on such terms;

 

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained herein, the parties hereto agree as follows:

 

SECTION 1.  Definitions. All capitalized terms not otherwise defined herein shall have the respective meanings set forth in the Credit Agreement.

 

SECTION 2.  Assignment.  The Assignor hereby assigns and sells to the Assignee all of the rights of the Assignor under the Credit Agreement to the extent of the Assigned Amount, and the Assignee hereby accepts such assignment from the Assignor and assumes all of the obligations of the Assignor under the Credit Agreement to the

 

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extent of the Assigned Amount, including the purchase from the Assignor of the corresponding portion of each of its outstanding Committed Loans and Letter of Credit Liabilities [and the Assigned Competitive Bid Loans] at the date hereof.  Upon the execution and delivery hereof by the Assignor, the Assignee, the Company and the Agent and the payment of the amounts specified in Section 3 required to be paid on the date hereof (i) the Assignee shall, as of the date hereof, succeed to the rights and be obligated to perform the obligations of a Lender under the Credit Agreement with a Commitment in an amount equal to the Assigned Amount and acquire the rights of the Assignor with respect to a corresponding portion of each of its outstanding Committed Loans and Letter of Credit Liabilities [and the Assigned Competitive Bid Loans], and (ii) the Commitment of the Assignor shall, as of the date hereof, be reduced by a like amount and the Assignor released from its obligations under the Credit Agreement to the extent such obligations have been assumed by the Assignee.  The assignment provided for herein shall be without recourse to the Assignor.

 

SECTION 3.  Payments.  As consideration for the assignment and sale contemplated in Section 2 hereof, the Assignee shall pay to the Assignor on the date hereof in Federal funds the amount heretofore agreed between them.*  It is understood that facility fees accrued to the date hereof are for the account of the Assignor and such fees accruing from and including the date hereof with respect to the Assigned Amount are for the account of the Assignee.  Each of the Assignor and the Assignee hereby agrees that if it receives any amount under the Credit Agreement which is for the account of the other party hereto, it shall receive the same for the account of such other party to the extent of such other party’s interest therein and shall promptly pay the same to such other party.

 

SECTION 4.  Consent of the Company and the Agent.  This Agreement is conditioned upon the consent of [each Issuing Lender, the Agent and the Company] pursuant to Section 9.06(c) of the Credit Agreement.  The execution of this Agreement by [each Issuing Lender, the Agent and the Company] is evidence of this consent.

 

SECTION 5.  Note.  Pursuant to Section 9.06(c) of the Credit Agreement, the Company agrees, if requested by the Assignee, to execute and deliver a Note payable to the Assignee or its registered assignee to evidence the assignment and assumption provided for herein.

 

SECTION 6.  Non-Reliance on Assignor.  The Assignor makes no representation or warranty in connection with, and shall have no responsibility with respect to, the solvency, financial condition, or statements of the Company, or the validity and enforceability of the obligations of the Company in respect of the Credit Agreement or any Note.  The Assignee acknowledges that it has, independently and without reliance on the Assignor, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and will continue to be responsible for making its own independent appraisal of the business, affairs and financial condition of the Company.

 




*  Amount should combine principal together with accrued interest and breakage compensation, if any, to be paid by Assignee, net of any portion of any upfront fee to be paid by the Assignor to the Assignee.  It may be preferable in an appropriate case to specify these amounts generically or by formula rather than as a fixed sum.

 

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SECTION 7.  Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

SECTION 8.  Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their duly authorized officers as of the date first above written.

 

	
 
    	
[ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, N.A., as Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[ISSUING LENDERS]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ROCKWELL COLLINS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:                                                ]
    


 

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EXHIBIT H

 

[FORM OF] DESIGNATION AGREEMENT

 

dated as of ________________ __, _____

 

Reference is made to the Five-Year Credit Agreement dated as of December 16, 2016 (as amended from time to time, the “Credit Agreement”) among Rockwell Collins, Inc., a Delaware corporation (the “Company”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as Agent (the “Agent”).  Terms defined in the Credit Agreement are used herein with the same meaning.

 

_________________ (the “Designator”) and ________________ (the “Designee”) agree as follows:

 

1.         The Designator designates the Designee as its Designated Lender under the Credit Agreement and the Designee accepts such designation.

 

2.         The Designator makes no representations or warranties and assumes no responsibility with respect to the financial condition of the Company or the performance or observance by the Company of any of its obligations under the Credit Agreement or any other instrument or document furnished pursuant thereto.

 

3.         The Designee (i) confirms that it is an Eligible Designee; (ii) appoints and authorizes the Designator as its administrative agent and attorney-in-fact and grants the Designator an irrevocable power of attorney to receive payments made for the benefit of the Designee under the Credit Agreement and to deliver and receive all communications and notices under the Credit Agreement, if any, that the Designee is obligated to deliver or has the right to receive thereunder; (iii) acknowledges that the Designator retains the sole right and responsibility to vote under the Credit Agreement, including, without limitation, the right to approve any amendment or waiver of any provision of the Credit Agreement; and (iv) agrees that the Designee shall be bound by all such votes, approvals, amendments and waivers and all other agreements of the Designator pursuant to or in connection with the Credit Agreement, all subject to Section 9.05 of the Credit Agreement.

 

4.         The Designee (i) confirms that it has received a copy of the Credit Agreement, together with copies of the most recent financial statements referred to in Article 4 or delivered pursuant to Article 5 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Designation Agreement and (ii) agrees that it will, independently and without reliance upon the Agent, the Designator or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking any action it may be permitted to take under the Credit Agreement.

 

5.         Following the execution of this Designation Agreement by the Designator and the Designee and the consent hereto by the Company, it will be delivered

 

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to the Agent for its consent.  This Designation Agreement shall become effective when the Agent consents hereto or on any later date specified on the signature page hereof.

 

6.         Upon the effectiveness hereof, the Designee shall have the right to make Loans or portions thereof as a Lender pursuant to Section 2.01 or 2.03 of the Credit Agreement and the rights of a Lender related thereto.  The making of any such Loans or portions thereof by the Designee shall satisfy the obligations of the Designator under the Credit Agreement to the same extent, and as if, such Loans or portions thereof were made by the Designator.

 

7.         This Designation Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

IN WITNESS WHEREOF, the parties have caused this Designation Agreement to be executed by their respective officers hereunto duly authorized, as of the date first above written.

 

Effective Date:______ __, ____

 

	
 
    	
[NAME OF DESIGNATOR]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[NAME OF DESIGNEE]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 

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The undersigned consent to the foregoing designation.

 

	
 
    	
ROCKWELL COLLINS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, N.A., as Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 

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EXHIBIT I

 

FORM OF EXTENSION AGREEMENT

 

JPMorgan Chase Bank, N.A.

as Agent

under the Five-Year Credit Agreement

referred to below

 

Ladies and Gentlemen:

 

The undersigned hereby agrees to extend, effective [Extension Date], the Termination Date under the Five-Year Credit Agreement dated as of December 16, 2016 (as amended from time to time, the “Five-Year Credit Agreement”) among Rockwell Collins, Inc., the Lenders party thereto and JPMorgan Chase Bank, N.A., as Agent, for one year to [date to which the Termination Date is extended].  Terms defined in the Five-Year Credit Agreement are used herein with the same meaning.

 

This Extension Agreement shall be construed in accordance with and governed by the law of the State of New York.

 

	
 
    	
[LENDERS]
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
Agreed and accepted:
    	
 
    
	
 
    	
 
    
	
ROCKWELL COLLINS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
JPMORGAN CHASE BANK, N.A., as 
   Agent
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title: